Which of the Following Statements Is Most Correct

question 92

Multiple Choice

Which of the following statements is most correct?

• A) 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.
• B) If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.
• C) If a coupon bond is selling at par, its current yield equals its yield to maturity.
• D) Both a and b are correct.
• E) Both b and c are correct.

---

Definitions:

Pragma Love

A practical form of love based on mutual benefit, understanding, and long-term interests, rather than purely emotional attachment.

Exchange Theory

A social theory that describes social relationships as transactions where individuals seek to maximize rewards and minimize costs in interactions with others.

Reciprocal

Involving mutual action or relationship where two or more entities give and receive something of equivalent value or effect.

Stressful

Involving or causing a state of mental or emotional strain or tension.