Which of the Following Statements Is Most Correct

question 63

Multiple Choice

Which of the following statements is most correct?

• A) The current yield on Bond A exceeds the current yield on Bond B;therefore,Bond A must have a higher yield to maturity than Bond B.
• B) If a bond is selling at a discount,the current yield is a better measure of return than the yield to maturity.
• C) If a coupon bond is selling at par,its current yield equals its yield to maturity.
• D) Both a and b are correct.
• E) Both b and c are correct.

---

Definitions:

Writes

Writes refers to the act of composing text for various purposes, such as communication, recording, or artistic expression.

Delivered

Successfully transferred or brought to a specified destination.

Effect

The result or outcome that is produced by a cause or agent; it shows how something influences the state of something else.

Affect

The experience of feeling or emotion, which can influence an individual's perception and behavior.