Which of the Following Statements Is CORRECT

question 79

Multiple Choice

Which of the following statements is CORRECT?

• A) Assume that two bonds have equal maturities and are of equal risk,but one bond sells at par while the other sells at a premium above par.The premium bond must have a lower current yield and a higher capital gains yield than the par bond.
• B) A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.
• C) If a bond sells at par,then its current yield will be less than its yield to maturity.
• D) If a bond sells for less than par,then its yield to maturity is less than its coupon rate.
• E) A discount bond's price declines each year until it matures,when its value equals its par value.

---

Definitions:

Coping Method

Strategies or techniques that individuals use to manage stress, challenges, or emotional conflicts.

Reappraising the Situation

A cognitive process that involves changing one's interpretation of a situation to alter its emotional impact.

Accounting Job

A position that involves managing financial records, preparing reports, and ensuring compliance with financial laws and regulations.

Personality Traits

Enduring characteristics that describe an individual's behavior, such as honesty, sociability, and humility.