If a Bond's Purchase Price Equals the Face Value The

question 44

Multiple Choice

If a bond's purchase price equals the face value the:

• A) coupon rate equals the current yield, which is less than the yield to maturity.
• B) current yield equals the yield to maturity, which exceeds the coupon rate.
• C) coupon rate equals the yield to maturity, which equals the current yield.
• D) coupon rate does not equal the current yield, which does not equal the yield to maturity.

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Definitions:

Improper Standardization

The faulty or inconsistent application of norms, rules, or measurements in research or assessment processes.

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, indicating how well the test predicts a specific aspect of a person's behavior or performance.

Mechanical Aptitude

Mechanical aptitude refers to a person's ability to understand and apply mechanical concepts and principles, often assessed for careers involving machinery or engineering tasks.

Criterion-related Validity

The extent to which a measure is associated with an external criterion or outcome, assessing the test's predictive or concurrent accuracy.