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:

Procrastinate

The act of delaying or postponing tasks or decisions, often unnecessarily.

Projection

The act of estimating or forecasting future outcomes based on current or past data.

Selective Perception

The cognitive process by which individuals perceive what they want in the mass of stimuli around them, ignoring other information.

Interest

The sensation of being curious to acquire knowledge or information about someone or something.