The price of a bond is equal to the face amount payable at maturity plus the periodic interest payments. This is a false statement.
The price of a bond refers to the amount that investors are willing to pay for an existing bond. Typically, the price of a bond is provided in terms of the percentage of face value. Such as, a bond's price is calculated by adding the present value of the face amount payable at maturity and the present value of the periodic interest payments.
Thus the true statement is as follows: the price of a bond is equal to the present value of the face amount payable at maturity plus the present value of the periodic interest payments.
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