Which of the Following Statements Is CORRECT

question 96

Multiple Choice

Which of the following statements is CORRECT?

• A) The yield to maturity for a coupon bond that sells at a premium consists entirely of a positive capital gains yield; it has a zero current interest yield.
• B) The market value of a bond will always approach its par value as its maturity date approaches. This holds true even if the firm has
• Filed for bankruptcy.
• C) Rising inflation makes the actual yield to maturity on a bond greater than a quoted yield to maturity that is based on market
• Prices.
• D) The yield to maturity on a coupon bond that sells at its par value consists entirely of a current interest yield; it has a zero
• Expected capital gains yield.
• E) On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss.

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Definitions:

Right Ventricle

The chamber of the heart that pumps deoxygenated blood to the lungs via the pulmonary artery.

Ascending Aorta

The initial section of the aorta, rising from the left ventricle of the heart and arching to form the aortic arch.

Superior Vena Cava

A large vein carrying deoxygenated blood from the upper half of the body to the heart's right atrium.

Ventricular Cardiac Muscle Cells

Cells specialized for contracting, found in the walls of the ventricles of the heart, enabling it to pump blood.