Which of the Following Statements Is CORRECT

question 18

Multiple Choice

Which of the following statements is CORRECT?

• A) All else equal,senior debt generally has a lower yield to maturity than subordinated debt.
• B) An indenture is a bond that is less risky than a mortgage bond.
• C) The expected return on a corporate bond will generally exceed the bond's yield to maturity.
• D) If a bond's coupon rate exceeds its yield to maturity,then its expected return to investors will also exceed its yield to maturity.
• E) Under our bankruptcy laws,any firm that is in financial distress will be forced to declare bankruptcy and then be liquidated.

---

Definitions:

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Law Of Effect

The principle that behaviour followed by pleasant consequences is likely to be repeated; behaviour followed by unpleasant consequences is not.

Behaviour

Refers to the actions or reactions of an object or organism, often in relation to the environment or stimuli.

Pleasant Outcomes

The positive results or benefits achieved from a specific action, decision, or event.