Which of the Following Statements Is Most Correct

question 7

Multiple Choice

Which of the following statements is most correct?

• A) If a bond's yield to maturity exceeds its annual coupon, then the bond will be trading at a premium.
• B) If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero coupon bond.
• C) If a coupon bond is selling at par, its current yield equals its yield to maturity.
• D) Both a and c are correct.
• E) None of the answers above is correct.

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Definitions:

Entrepreneurship Major

An academic program focusing on teaching students how to start, manage, and grow their own businesses, including lessons on innovation, business planning, and risk-taking.

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Individuals who begin or carry out tasks without needing external encouragement or pressure, showing initiative and motivation.

Intern

is an individual, often a student or recent graduate, working temporarily in a job to gain work experience or meet requirements for a qualification.

Venture Capitalist

An investor who provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.