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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Definitions:

Conventional Motivations

Conventional motivations refer to standard or widely accepted reasons that drive people's actions within a society.

Child

A young human being below the age of puberty or below the legal age of majority.

Gay

A term used to describe individuals who are romantically or sexually attracted to people of the same sex.

Parents

Adults who have children or who have the responsibility of raising children, either biological or adopted.