Which of the Following Statements Is CORRECT

question 89

Multiple Choice

Which of the following statements is CORRECT?

• A) A bond is likely to be called if its coupon rate is below its YTM.
• B) A bond is likely to be called if its market price is below its par
• Value.
• C) Even if a bond's YTC exceeds its YTM, an investor with an investment horizon longer than the bond's maturity would be worse
• Off if the bond were called.
• D) A bond is likely to be called if its market price is equal to its
• Par value.
• E) A bond is likely to be called if it sells at a discount below par.

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Definitions:

Violation

The act of breaking or failing to comply with a rule, agreement, or law.

Social Rule

Guidelines and norms that govern behavior within a society or group, often implied and learned through social interaction.

Personal Bias

The inclination or prejudice for or against one person or group, especially in a way considered to be unfair.

Positivist Sociologists

Researchers who apply the scientific method and empirical evidence to study and understand social behaviors and structures.