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:

Cultural Universals

Patterns or traits that are globally common to all societies, such as language, religion, and family structures.

Situational Norms

Shared expectations and rules guiding behavior in specific situations, environments, or contexts.

Folkway

Norms that govern everyday behavior in society, often unspoken and taken for granted, but influential in guiding social interactions.

Taboo

Describes behaviors, practices, or topics that are forbidden or deemed highly inappropriate by a culture or society due to moral, social, or religious reasons.