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.

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Definitions:

Aggregate Supply Curve

The aggregate supply curve represents the total quantity of all goods and services that producers in an economy are willing and able to supply at different price levels.

Government Purchases

Expenditures by government entities on goods and services that directly fulfill governmental functions or public needs.

Taxes

Mandatory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

Aggregate Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of an economy and the overall price level.