If a Bond Is Selling at Par Value, Which of the Following

question 105

Multiple Choice

If a bond is selling at par value, which of the following statements is correct?

• A)The current yield must equal the coupon rate.
• B)The current yield must equal the yield to maturity.
• C)Both of these statements are correct.
• D)None of these statements is correct.

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Definitions:

Ectoderm

The embryonic external layer of cells or tissue that forms early on and develops into the skin and nervous system.

Mesoderm

The middle layer of an embryo in early development, between the endoderm and ectoderm, which gives rise to muscles, bones, and blood tissues.

Germ Layer

Each of the three layers of cells (ectoderm, mesoderm, and endoderm) that form during embryogenesis, which give rise to all tissues and organs of an organism.

Radial Cleavage

A type of embryonic development in which the cells divide parallel or perpendicular to the polar axis, resulting in a radially symmetrical embryo.