Which of the Following Statements Is Correct

question 40

Multiple Choice

Which of the following statements is correct?

• A) The discount or premium on a bond can be expressed as the difference between the coupon payment on an old bond which originally sold at par and the coupon payment on a new bond,selling at par,where the difference in payments is discounted at the new market rate.
• B) The price of a coupon bond is determined primarily by the number of years to maturity.
• C) On a coupon paying bond,the final interest payment is made one period before maturity and then,at maturity,the bond's face value is paid as the final payment.
• D) The actual capital gains yield for a one-year holding period on a bond can never be greater than the current yield on the bond.
• E) All of the above statements are false.

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Definitions:

Underwater Landslide

A movement of rock, earth, or debris down a slope in an underwater environment, often triggered by earthquakes or other disturbances.

Tsunami

Ocean waves of exceptionally long lengths triggered by significant disturbances such as seismic activity, volcanic explosions, or submarine landslides.

Volcanic Eruption

The release of magma, gases, and ash from a volcano, which can form new landforms and impact climate.

Landslide

The movement of rock, earth, or debris down a slope due to gravity, often triggered by factors like rain, earthquakes, or human activity.