Which of the Following Statements Is CORRECT

question 86

Multiple Choice

Which of the following statements is CORRECT?

• A) If a coupon bond is selling at a premium, then the bond's current yield is zero.
• B) If a coupon bond is selling at a discount, then the bond's expected
• Capital gains yield is negative.
• C) If a bond is selling at a discount, the yield to call is a better
• Measure of the expected return than the yield to maturity.
• D) The current yield on Bond A exceeds the current yield on Bond B.
• Therefore, Bond A must have a higher yield to maturity than Bond B.
• E) If a coupon bond is selling at par, its current yield equals its yield to maturity.

---

Definitions:

Interstitial Fluid

The fluid that fills the spaces between most cells of the body, providing a means of delivering nutrients to cells and removing waste products.

Blood Vessels

Tubes in the body through which blood circulates, including arteries, veins, and capillaries.

Viscosity

A measure of a fluid's resistance to flow, describing how "thick" or "sticky" it is.

Acid-Base Buffers

Solutions that minimize changes in pH when an acid or base is added, helping to maintain a stable environment in biological systems.