If the Current Price of a Bond Is Greater Than

question 75

Multiple Choice

If the current price of a bond is greater than its face value

• A)an investor will receive a capital gain by holding the bond until maturity.
• B)the yield to maturity must be less than the coupon rate.
• C)the coupon rate must be less than the current yield.
• D)the coupon rate must be equal to the current yield.

Recognize the importance of structure in supporting innovation within large, established firms entering new lines of business.

Explain the concepts of "span of control" and the structural implications of "tall versus flat" organizations.

Identify the elements of organizational complexity including vertical, horizontal, and geographical division of labor.

Differentiate between mechanistic and organic structures and identify the environments that favor each.