Which of the Following Statements Is CORRECT

question 72

Multiple Choice

Which of the following statements is CORRECT?

• A) The total return on a bond during a given year is based only on the coupon interest payments received.
• B) All else equal,a bond that has a coupon rate of 10% will sell at a discount if the required return for bonds of similar risk is 8%.
• C) The price of a discount bond will increase over time,assuming that the bond's yield to maturity remains constant.
• D) For a given firm,its debentures are likely to have a lower yield to maturity than its mortgage bonds.
• E) When large firms are in financial distress,they are almost always liquidated,whereas smaller firms are generally reorganized.

---

Definitions:

Annually

Occurring once every year or relating to a period of one year.

Motivating

The process of stimulating someone to act in a certain way in order to achieve desired outcomes or goals.

Developing Employees

The process of enhancing the capabilities and capacities of employees through various forms of learning and development activities.

Managerial Success

The achievement of desired managerial outcomes, such as reaching targets, optimizing resources, and effectively leading teams.