Which of the Following Statements Is CORRECT

question 80

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 is 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,and its expected capital gains yield is zero.
• 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:

Respect For Others

Acknowledgement and consideration for the feelings, rights, traditions, and beliefs of other individuals, fostering a sense of mutual understanding and harmony.

Secondary Research Analysis

The process of synthesizing and analyzing data that was collected by someone else for a purpose other than the current research objective.

Disadvantage

A condition or situation that causes an individual or group to be in a less favorable position, often affecting their ability to compete or succeed.

Data Collection

The process of gathering and measuring information on variables of interest in an organized and systematic way for research purposes.