Which one of the following is false? The amount that will be repaid at the end of the loan is called the bond's par value. Coupon is the stated interest payment made on a bond. The annual coupon divided by the face value is called the face on the bond. When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that are generically called bonds. The interest rate required in the market on a bond is called the bond's yield to maturity.

The false statement is : "The annual coupon divided by the face value is called the face on the bond."

Explanation:

The annual coupon divided by the face value is called the face on the bond should be called coupon rate rather than face on the bond.

Face on the bond is also called par value is the amount repaid at the end of the bond's term.

Coupon is the stated interest payment made on a bond: it is the right statement. We have coupon payment = face value of the bond x coupon rate.

When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that are generically called bonds: this is a right statement. For long-term debt, corporation and government usually raise fund through selling bonds in the market.

The interest rate required in the market on a bond is called the bond's yield to maturity: this is the right statement. From the time the bond is valued to the time it is matured, the market rate (discount rate) used for valuation is called bond's yield to maturity.