Which of the Following Are True Concerning the Distinction Between

question 84

Multiple Choice

Which of the following are true concerning the distinction between interest rates and returns?

• A) The rate of return on a bond will not necessarily equal the interest rate on that bond.
• B) The return can be expressed as the difference between the current yield and the rate of capital gains.
• C) The rate of return will be greater than the interest rate when the price of the bond falls between time t and time t + 1.
• D) The return can be expressed as the sum of the discount yield and the rate of capital gains.

---

Definitions:

Retablo

Spanish, “altarpiece.”

Triumph of the Name of Jesus

A ceiling fresco by Giovanni Battista Gaulli in the Church of the Gesù in Rome, displaying a dramatic illusionistic perspective that merges architecture with the painted space.

Giovanni Battista Gaulli

An Italian Baroque artist known for his vibrant frescoes and paintings, often by his nickname Baciccio.

Mandorla

An almond-shaped nimbus surrounding the figure of Christ or other sacred figure. In Buddhist Japan, a lotus-petal-shaped nimbus.