Which of the Following Statements Is NOT CORRECT

question 77

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) All else equal, bonds with longer maturities have more interest rate (price) risk than bonds with shorter maturities.
• B) If a bond is selling at its par value, its current yield equals its yield to maturity.
• C) If a bond is selling at a premium, its current yield will be greater than its yield to maturity.
• D) All else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons.
• E) If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.

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Definitions:

Development Method

A systematic approach used in the business, engineering, or software development fields to improve or create processes, products, or methodologies.

High-potential Employees

Individuals identified within an organization as having the aptitude and motivation to rise to leadership positions and excel in higher levels of responsibility.

Action Learning

A hands-on approach to learning, where individuals tackle real-world problems in teams, reflecting on their experiences, and applying their findings.

HRM Systems

Software platforms that support the functions of human resource management, including recruitment, payroll, performance management, and employee development.