Which of the Following Statements Is NOT CORRECT

question 5

Multiple Choice

Which of the following statements is NOT CORRECT?

• A)If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.
• B)All else equal, bonds with longer maturities have more interest rate (price) risk than bonds with shorter maturities.
• C)If a bond is selling at its par value, its current yield equals its yield to maturity.
• D)If a bond is selling at a premium, its current yield will be greater than its yield to maturity.
• E)All else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons.

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Definitions:

Stressful Conditions

Situations or environments that create psychological or physical strain on individuals, often leading to a state of tension or discomfort.

Motivated

Having a strong desire or willingness to do something, driven by certain needs, desires, or goals.

Accountable

Being responsible for one's actions and decisions, and answerable to someone for those actions.

Fulfill Purpose

Fulfill purpose refers to achieving or realizing one's goals, intentions, or reasons for existence.