If the Purchase Price of a Bond Exceeds the Face

question 60

Multiple Choice

If the purchase price of a bond exceeds the face value, the yield to maturity:

• A)Is greater than the coupon rate because the capital gain is positive
• B)Will equal the current yield
• C)Will be less than the coupon rate because the capital gain will be negative
• D)Will be greater than the current yield

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Definitions:

Abuse

The improper treatment of a person or entity, often to unfairly or improperly gain benefit.

Familism

A cultural belief emphasizing the importance of family connections, loyalty, and reliance within a social group.

Family Obligation

Duties, responsibilities, or expectations that individuals may have towards their family members, often culturally defined.

Risk Factors

Characteristics or conditions that increase the likelihood of developing a disease or injury.