Which of the Following Statements Is CORRECT

question 38

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a given price.

Quantity Supplied

Quantity supplied refers to the amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Rationing Gasoline

Rationing gasoline is a control measure where the government limits the amount of gasoline that consumers can purchase, usually in response to supply shortages.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given time period.