Which of the Following Statements Is CORRECT

question 12

Multiple Choice

Which of the following statements is CORRECT?

• A) If a coupon bond is selling at par, its current yield equals its yield to maturity.
• B) If a coupon bond is selling at a discount, its price will continue
• To decline until it reaches its par value at maturity.
• C) If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero
• Coupon bond.
• D) If a bond's yield to maturity exceeds its annual coupon, then the
• Bond will trade at a premium.
• E) If a coupon bond is selling at a premium, its current yield equals
• Its yield to maturity.

---

Definitions:

Monetary Terms

Describing or measuring something in terms of money or currency.

Physical Data

Data that represents physical observations or measurements, as opposed to data generated by theoretical models or simulations.

Management Accounting

The practice of analyzing and presenting financial information to internal management to assist in planning, controlling, and decision-making.

Salary Cost

The total expense borne by an employer for employee wages, benefits, and other compensation.