Which of the Following Statements Is CORRECT

question 85

Multiple Choice

Which of the following statements is CORRECT?

• A) If a coupon bond is selling at par,its current yield equals its yield to maturity.
• B) If a coupon bond is selling at a discount,its price will continue to decline until it reaches its par value at maturity.
• C) If interest rates increase,the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.
• D) If a bond's yield to maturity exceeds its annual coupon,then the bond will trade at a premium.
• E) If a coupon bond is selling at a premium,its current yield equals its yield to maturity.

---

Definitions:

Plastic

Synthetic or semi-synthetic organic compounds that are malleable and can be molded into solid objects of diverse shapes.

Budgeted Production

The estimated amount of goods or services that a company plans to produce over a specific time frame, according to its budget.

Cash Disbursements

The process of paying out cash for expenses and purchases as recorded in the cash disbursement journal.

Credit Sales

Credit sales are transactions where the exchange of goods or services is made on the promise of future payment.