Which of the Following Statements Is CORRECT

question 50

Multiple Choice

Which of the following statements is CORRECT?

• A) The total yield on a bond is derived from dividends plus changes in the price of the bond.
• B) Bonds are riskier than common stocks and therefore have higher required returns.
• C) Bonds issued by larger companies always have lower yields to maturity (less risk) than bonds issued by smaller companies.
• D) The market value of a bond will always approach its par value as its maturity date approaches, provided the bond's required return remains constant.
• E) If the Federal Reserve unexpectedly announces that it expects inflation to increase, then we would probably observe an immediate increase in bond prices.

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Definitions:

Potassium And Sodium Ion Channels

Protein channels located in cell membranes that allow potassium and sodium ions to move across, vital for processes such as nerve impulse transmission.

Falling Dominoes

Often used as a metaphor describing a situation where one event sets off a chain of similar events, much like standing dominoes falling in a sequence when the first one is knocked over.

Schwann Cells

A type of glial cell in the peripheral nervous system responsible for the formation of myelin sheaths around neuronal axons, aiding in faster signal transmission.

Oligodendroglia

Glial cells in the CNS that myelinate axons.