If the Purchase Price of a Bond Exceeds the Face

question 113

Multiple Choice

If the purchase price of a bond exceeds the face value, the yield to maturity:

• A) is greater than the coupon rate because the capital gain is positive.
• B) will equal the current yield.
• C) will be less than the coupon rate because the capital gain will be negative.
• D) will be greater than the current yield.

---

Definitions:

General Adaptation Syndrome

A theoretical model describing the body's response to stress in three stages: alarm, resistance, and exhaustion.

Alarm Stage

The initial phase of the stress response, where the body reacts to a stressor with a fight-or-flight response, activating various physiological changes.

Measuring Stress

The process of assessing the level of stress an individual experiences, often through various physiological and psychological tests.

Researchers Use

The application of various methods and tools by scientists to conduct experiments, gather data, and test hypotheses.