Which of the Following Statements About a Bond That Sells

question 31

Multiple Choice

Which of the following statements about a bond that sells for its par value is correct?

• A)The yield to maturity is comprised of a capital gains yield equal to the face value of the bond.
• B)As long as market rates remain constant, the bond's capital gains yield will equal to zero.
• C)The yield to maturity is comprised of an interest yield equal to the capital yield on the bond.
• D)The yield to maturity is equal to the present value of interest payments received from the bond.
• E)The yield to maturity is equal to the future value of interest payments received from the bond.

Recognize the foundational principles of business ethics initiatives like the Defense Industry Initiative.

Evaluate the influence of personal values from family, religion, and school on business decision-making.

Describe the societal and legislative reactions to unethical business actions.

Understand the historical development of business ethics.

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Definitions:

Defective Bolts

A term referring to bolts that fail to meet quality standards or specifications, potentially leading to failures in applications.

Probability

A gauge of event occurrence likelihood, denoted by a number from 0 to 1.

Probability Distribution

A function in mathematics that calculates the chances of various outcomes happening in an experiment.

E(x)

The expected value of a random variable, representing the mean or average value the variable takes over a large number of experiments or trials.