Which of the Following Statements Is Most Correct

question 25

Multiple Choice

Which of the following statements is most correct?

• A) All else equal, a bond that has a coupon rate of 10 percent will sell at a discount if the required return for a bond of similar risk is 8 percent.
• B) The price of a discount bond will increase over time, assuming that the bond's yield to maturity remains constant over time.
• C) The total return on a bond for a given year consists only of the coupon interest payments received.
• D) Both b and c are correct.
• E) All of the statements above are correct.

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