Which of the Following Statements Is CORRECT

question 57

Multiple Choice

Which of the following statements is CORRECT?

• A) If the Federal Reserve unexpectedly announces that it expects inflation to increase,then we would probably observe an immediate increase in bond prices.
• B) The total yield on a bond is derived from dividends plus changes in the price of the bond.
• C) Bonds are generally regarded as being riskier than common stocks,and therefore bonds have higher required returns.
• D) Bonds issued by larger companies always have lower yields to maturity (due to less risk)than bonds issued by smaller companies.
• E) The market price of a bond will always approach its par value as its maturity date approaches,provided the bond's required return remains constant.

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Definitions:

Worker Involvement

The practice of including employees in the decision-making process of a business, often to improve morale, productivity, and ownership of work.

Core Values

These are the fundamental beliefs of a person or organization, guiding principles that dictate behavior and action.

Organizational Complexity

Refers to the levels, hierarchies, processes, and systems that comprise and control a company, making its management challenging.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action within an organization.