Which One of the Following Sentences Is Correct Concerning Fixed-Income

question 4

Multiple Choice

Which one of the following sentences is correct concerning fixed-income securities?

• A)The coupon rate on a fixed-income security is equal to the current yield.
• B)The price of a fixed-income security is inversely related to the current yield.
• C)Fixed-income securities are default free.
• D)Fixed-income securities tend to be more liquid than money market securities.
• E)Fixed-income securities include all debt instruments issued by the U.S. government.

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Definitions:

Harvest

In a business context, refers to the act of selling off or extracting value from an investment at a profit.

Original Investment

The initial sum of money put into a project, business, or financial asset.

Venture Growth

The process of expanding a business venture in terms of operations, market share, and profitability.

Aspiring Entrepreneur

An individual who aims to start and run their own business, often fueled by a passion for innovation and self-employment.