Which One of the Following Statements Is Correct

question 51

Multiple Choice

Which one of the following statements is correct?

• A)Investors know the rate of return they will earn with certainty provided they hold bonds until they mature.
• B)Reinvestment risk causes realized yields to differ from promised yields.
• C)Realized yields generally equal promised yields as long as a bond is not called.
• D)Redeeming a bond early helps ensure an investor earns the promised yield.
• E)Realized yields cannot exceed promised yields.

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Definitions:

Vitruvius

A Roman author, architect, and engineer from the 1st century BC, best known for his treatise "De Architectura," which influenced Renaissance architecture and the principles of design.

Chimera Of Arezzo

An Etruscan bronze statue representing the mythological creature Chimera, showcasing the high level of craftsmanship in ancient Etruscan metalwork.

Composite Creature

A mythological figure or artwork that is depicted as being made up of parts from various animals, often symbolizing a combination of strengths or powers.

Heraldic Creature

A mythical or real animal used in heraldry, representing certain traits or characteristics, and often serving as a symbol on coats of arms.