Which One of the Following Statements Is Correct Concerning Premium

question 48

Multiple Choice

Which one of the following statements is correct concerning premium bonds?

• A)The premium increases when interest rates increase.
• B)The coupon rate is less than the current yield.
• C)As the time to maturity decreases, the premium increases.
• D)The yield to maturity is less than the coupon rate.
• E)The par value exceeds the face value.

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Definitions:

Metabolic rate

The rate at which an organism's body converts food into energy, critical for sustaining life processes and determining energy expenditure.

Free radical

An atom or molecule that has an unpaired electron, making it highly reactive and potentially damaging to cells and tissues.

Endocrine system

A network of glands in the body that produces and secretes hormones directly into the bloodstream to regulate various bodily functions.

Frontal regions

Areas located at the front of the brain, primarily responsible for executive functions, decision making, and personality expression.