Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower current yield and a higher
• Capital gains yield than the par bond.
• B) A bond's current yield must always be either equal to its yield to
• Maturity or between its yield to maturity and its coupon rate.
• C) If a bond sells at par, then its current yield will be less than
• Its yield to maturity.
• D) If a bond sells for less than par, then its yield to maturity is
• Less than its coupon rate.
• E) A discount bond's price declines each year until it matures, when
• Its value equals its par value.

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Definitions:

Self-Regulation

The ability to manage and control one's own emotions, thoughts, and behaviors in different situations.

Willpower

The capacity to resist short-term temptations in order to meet long-term goals.

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The patterns or behaviors related to how individuals consume food, often formed by past experiences, cultural influences, and personal preferences.

Change Your Routine

Altering one’s daily patterns or habits to improve efficiency, health, or well-being.