Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A)If the Federal Reserve unexpectedly announces that it expects inflation to increase, then we would probably observe an immediate increase in bond prices.
• B)The total yield on a bond is derived from dividends plus changes in the price of the bond.
• C)Bonds are riskier than common stocks and therefore have higher required returns.
• D)Bonds issued by larger companies always have lower yields to maturity (less risk) than bonds issued by smaller companies.
• E)The market value of a bond will always approach its par value as its maturity date approaches, provided the bond's required return remains constant.

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Definitions:

Ethnolinguistics

The study of the relationship between language and culture and how they influence and shape each other.

Historical Linguistics

The study of how languages change over time, including their development, evolution, and the relationships between different languages.

Neandertal

An extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago.

Modern Speech

The contemporary forms and uses of spoken language, as distinguished from older forms or stages in the historical development of a language.