Which of the Following Statements Is True About Bonds

question 47

Multiple Choice

Which of the following statements is true about bonds?

• A) The higher the coupon rate, the shorter the duration.
• B) The yield on a bond is usually fixed.
• C) A bond's coupon rate is equal to its face value.
• D) Most bonds pay interest annually.

---

Definitions:

Income Distribution

The way in which a nation’s total income is spread among its population, affecting economic inequality.

Output Value

The total value of all goods or services produced by a firm or economy, often measured in terms of monetary value.

Imperfectly Competitive Market

A market structure where the assumptions of perfect competition, such as a large number of buyers and sellers, homogeneity of products, and free market entry and exit, are not fully met.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a standardized product.