Which One of the Following Sentences Is Correct Concerning Fixed-Income

question 4

Multiple Choice

Which one of the following sentences is correct concerning fixed-income securities?

• A)The coupon rate on a fixed-income security is equal to the current yield.
• B)The price of a fixed-income security is inversely related to the current yield.
• C)Fixed-income securities are default free.
• D)Fixed-income securities tend to be more liquid than money market securities.
• E)Fixed-income securities include all debt instruments issued by the U.S. government.

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Definitions:

Lactate

A compound produced during anaerobic metabolism, often associated with muscle fatigue.

Liver

A large, vital organ in vertebrates responsible for detoxification, producing bile, metabolizing nutrients, and performing other biochemical tasks.

Glucose

A simple sugar that is an important energy source in living organisms, also a critical component of carbohydrate metabolism.

Cori Cycle

Named for Czech-U.S. biochemist and Nobel laureate Carl F. Cori (1896–1984). Lactic acid, produced by skeletal muscle, is carried in the blood to the liver, where it is aerobically converted into glucose. The glucose may return through the blood to skeletal muscle or may be stored as glycogen in the liver.