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.

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Definitions:

Ethnic Majority

The sociocultural group within a society that holds the majority of power and influence, often setting societal norms and standards.

Group Identity

The sense of belonging to a specific social group, often accompanied by a strong emotional connection and adherence to group norms and values.

Stereotypes

Oversimplified generalizations about groups of people that may or may not reflect their actual characteristics or behaviors.

Social Interactions

The process by which individuals act and react in relation to others, forming the basis of social relationships.