Which One of the Following Statements Is True Concerning Bonds

question 47

Multiple Choice

Which one of the following statements is true concerning bonds?

• A) A bond yield represents only the interest earned on a bond.
• B) Bond yield data is more useful to an investor when compared over time.
• C) A bond's yield remains constant even when a bond is sold prior to maturity.
• D) Bonds with similar characteristics generally have widely disparate bond yields.

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Definitions:

Chi-square Test

A statistical test used to determine if there is a significant difference between observed and expected frequencies in one or more categories.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and it is assumed true until evidence indicates otherwise.

Significant Change

A statistical term used to describe a change in data that is likely not due to random chance alone.

Expected Cell Count

In contingency table analysis, the theoretical number of observations that are expected in each cell of the table under the assumption of independence.