Which of the Following Statements Is CORRECT

question 48

Multiple Choice

Which of the following statements is CORRECT?

• A) If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.
• B) 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.
• C) On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is
• Not expected to pay any cash coupon interest.
• D) If a coupon bond is selling at par, its current yield equals its
• Yield to maturity.
• E) 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.

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Definitions:

Hidden Observer

A concept in hypnosis suggesting a part of the mind is aware of everything during hypnosis, even if another part is not conscious of it.

Mind

The set of cognitive faculties that enables consciousness, perception, thinking, judgment, and memory; a person's mental processes and state.

Stimulants

A category of drugs that speed up activity in the central nervous system, suppress appetite, and can cause a person to feel more awake, alert, and energetic; also called “uppers.”

Nervous System

The complex network of nerves and cells that transmit signals between different parts of the body, facilitating bodily functions and responses to the environment.