Which of the Following Statements Is CORRECT

question 17

Multiple Choice

Which of the following statements is CORRECT?

• A)If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.
• B)On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss.
• C)On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest.
• D)If a coupon bond is selling at par, its current yield equals its yield to maturity.
• E)The current yield on Bond A exceeds the current yield on Bond B; therefore, Bond A must have a higher yield to maturity than Bond B.

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Definitions:

Acetyl-CoA

A molecule that plays a key role in metabolism, particularly in the synthesis and oxidation of fatty acids, and the Krebs cycle.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins.

Electron-Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane.

Glycolysis

A series of reactions that break down glucose to produce energy in the form of ATP, taking place in the cytoplasm of cells.