If the Current Price of a Bond Is Less Than

question 72

Multiple Choice

If the current price of a bond is less than its face value,

• A)an investor will receive a capital gain by holding the bond until maturity.
• B)the yield to maturity must be less than the current yield.
• C)the coupon rate must be greater than the current yield.
• D)the coupon rate must be equal to the current yield.

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Definitions:

Employee Referrals

A recruiting strategy where current employees recommend prospective candidates for job openings within the company, often incentivized through rewards.

Private Employment Agency

An organization that matches employers with job seekers for a fee.

Executive Search Firms

Companies specialized in recruiting executive-level personnel for other organizations, often for senior positions needing specific expertise.

On-campus Recruiting

The process by which employers visit universities and colleges to recruit directly from the graduating student population.