Which of the Following Statements Is CORRECT

question 66

Multiple Choice

Which of the following statements is CORRECT?

• A) The yield to maturity for a coupon bond that sells at a premium consists entirely of a positive capital gains yield;it has a zero current interest yield.
• B) The market value of a bond will always approach its par value as its maturity date approaches.This holds true even if the firm has filed for bankruptcy.
• C) Rising inflation makes the actual yield to maturity on a bond greater than a quoted yield to maturity that is based on market prices.
• D) The yield to maturity on a coupon bond that sells at its par value consists entirely of a current interest yield;it has a zero expected capital gains yield.
• E) The expected capital gains yield on a bond will always be zero or positive because no investor would purchase a bond with an expected capital loss.

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Definitions:

Pseudostratified Epithelium

A type of tissue lining some air passages and glands, appearing layered due to cell nuclei at different levels, though each cell contacts the basement membrane.

Stratified Epithelium

A type of epithelial tissue composed of multiple layers of cells, serving as a protective barrier in areas of the body subject to abrasion and friction.

Mesothelium

A simple squamous epithelium that lines the major cavities of the body and covers the surface of internal organs.

Visceral

Relating to the internal organs of the body, especially those within the chest or abdomen.