Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) A bond is likely to be called if its coupon rate is below its YTM.
• B) A bond is likely to be called if its market price is below its par value.
• C) Even if a bond's YTC exceeds its YTM,an investor with an investment horizon longer than the bond's maturity would be worse off if the bond were called.
• D) A bond is likely to be called if its market price is equal to its par value.
• E) A bond is likely to be called if it sells at a discount below par.

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Definitions:

Flash Memory Cards

Portable storage devices that use flash memory for storing data, widely used in digital cameras, smartphones, and other electronic gadgets.

Memory Modules

Hardware components that include integrated circuits used to store data or programs (software) temporarily or permanently in computers or other electronic devices.

RAM Chips

Memory modules made of integrated circuits used to store temporary data for quick access by the computer's processor.

Motherboard

The main printed circuit board in a computer, which hosts the central processing unit, memory, and other essential components and connectors for peripherals.