Which of the following statements is false?
A. The Treasury bond information published under the column heading "Yield" is based on the ask price of the bond.
B. The Treasury bond information published under the column heading "Yield" is based on the assumption that the bond is held to maturity.
C. The Treasury bond information published under the column heading "Bid" indicates the price a buyer will pay if he buys the bond.
D. The Treasury bond information published under the column heading "Bid" is the price a buyer will receive if she sells the bond.
Answer: C
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In the above figure, which point represents an economy which is at the peak part of a business cycle?
A) point F B) point G C) point I D) point K
In September 2012 the U.S. unemployment rate was 7.8 percent while the natural unemployment rate was 6 percent. The U.S. economy
A) had a negative output gap. B) had a positive output gap. C) had an output gap of zero. D) was at full employment.