Which of the Following Statements About Bonds Is Most Correct

question 48

Multiple Choice

Which of the following statements about bonds is most correct?

• A) The current yield on a bond is fixed over the life of the bond.
• B) The coupon rate on bond changes periodically on most long-term bonds,
• C) The yield to maturity on a bond is fixed as long as the bond is held until maturity.
• D) The price of a bond increases as the market interest rates increase.

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Definitions:

S are P

A simplified expression of a categorical proposition where "S" is the subject term and "P" is the predicate term, typically used to state a general relationship or attribute shared by all members of S.

Venn Diagram

A diagram that uses overlapping circles to illustrate the logical relationships between different sets of items or groups.

Universal Proposition

A statement that asserts something about every member of a particular category or class.

Shading

In logic, a method used to visually represent the parts of a categorical proposition that are affirmed or denied; also refers to a technique in drawing and art to create depth or texture.