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.

---

Definitions:

Horizontal Alignment

The coordination and integration of strategies, processes, and activities across different departments or functional areas within an organization.

Workforce Forecasting

The process of predicting an organization’s future employment needs in order to help ensure that it has the right number of workers with the right skills at the right time.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

HR Planning

The process by which an organization ensures that it has the right number and kind of people, at the right places, at the right time, capable of effectively and efficiently completing tasks that help the organization achieve its overall strategic objectives.