Which of the Following Statements Is CORRECT

question 68

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.

Understand the concept of economic rent in relation to wages and property.

Distinguish between primary and secondary labor markets and their characteristics.

Analyze the impact of minimum wage laws on employment and wages.

Comprehend the relationship between wages, productivity, and economic forces.

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Definitions:

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Unrealized Gains

Profits from investments that have increased in value but have not yet been sold for cash.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenues.

Gain Contingencies

Potential increases in assets or decreases in liabilities that may occur as a result of a future event, and which are acknowledged in financial statements if they are probable and can be reasonably estimated.