If a Bond Offers a Current Yield of 5% and a Yield

question 34

Multiple Choice

If a bond offers a current yield of 5% and a yield to maturity of 5.45%,then the:

• A) bond is selling at a discount.
• B) bond has a high default premium.
• C) promised yield is not likely to materialize.
• D) bond must be a Treasury Inflation-Protected Security.

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Definitions:

Momentary Contact

Momentary contact describes a switch mechanism that establishes a connection only when actuated and breaks the connection once the actuator is released, ensuring brief electrical contact.

Jog Circuit

A control circuit designed to momentarily energize a motor or device to adjust its position without engaging full operation.

Control Circuit

A low-power circuit used to control the operation of a main circuit or device, often involving relays, switches, and sensors.

Eleven-Pin

Refers to a type of connector or relay base with eleven pins used for electrical or electronic connections.