Which of the Following Statements Is Most Correct

question 58

Multiple Choice

Which of the following statements is most correct?

• A) If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
• B) If a bond sells at par, then its current yield will be less than its yield to maturity.
• C) Assuming that both bonds are held to maturity and are of equal risk, a bond selling for more than par with ten years to maturity will have a lower current yield and higher capital gain relative to a bond that sells at par.
• D) Answers a and c are correct.
• E) None of the answers above is correct.

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Definitions:

Negative Emotion

Feelings that are considered unpleasant or harmful, such as sadness, anger, or fear.

Sadness

An emotion characterized by feelings of disappointment, loss, or helplessness.

Intensity

A measure of the strength or severity of an event, emotion, or action.

Emotional Intelligence

The capability to identify, understand, and manage one's own emotions and the emotions of others, facilitating improved communication and relationships.