If a Bond Offers a Current Yield of 5% and a Yield

question 34

Multiple Choice

If a bond offers a current yield of 5% and a yield to maturity of 5.45%,then the:

• A) bond is selling at a discount.
• B) bond has a high default premium.
• C) promised yield is not likely to materialize.
• D) bond must be a Treasury Inflation-Protected Security.

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Definitions:

Ethics Intensity

The extent to which an ethical issue demands moral reflection or action, influenced by its potential impact on stakeholders and society.

Magnitude

The size, extent, or importance of something, often indicating its significant impact or intensity.

Social Consensus

The shared, general agreement among members of a society or group on values, norms, or acceptable behaviors.

Moral Manager

A manager who makes ethical behaviour a personal goal.