Which one of the following statements about zero coupon bonds is NOT true?
A) Zero coupon bonds have no coupon payments but promise a single payment at maturity.
B) Zero coupon bonds must sell for less than similar bonds that make periodic coupon payments.
C) Zero coupon bonds make coupon payments but no principal payment at maturity.
D) All of the above statements are true.
Answer: C) Zero coupon bonds make coupon payments but no principal payment at maturity.
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Great Plains is designed to be used by companies that have a large number of potential users
Indicate whether the statement is true or false
Which of the following statements is FALSE?
A) Forward rates tend not to be good predictors of future spot rates. B) Given the risk associated with interest rate changes, corporate managers require tools to help manage this risk. C) One of the most important tools to manage the risk of interest rate changes are interest rate forward contracts. D) A spot rate is an interest rate that we can guarantee today for a loan or investment that will occur in the future.