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:

Complex Problems

Issues or situations that are multifaceted and difficult to understand or solve due to their interconnected components.

ACT

Acceptance and Commitment Therapy, a form of psychotherapy that uses acceptance and mindfulness strategies mixed in different ways with commitment and behavior-change strategies.

Psychopathological Thoughts

Distorted or dysfunctional thinking patterns associated with mental disorders.

Normal Minds

Refers to the psychological state or cognitive abilities perceived as within the typical or average range of human functioning.