Which of the Following Is Not a Reason Why the Yield

question 51

Multiple Choice

Which of the following is not a reason why the yield to maturity can differ from the current yield?

• A) Because the yield to maturity considers the capital gain/loss.
• B) Because the current yield focuses only on the coupon payment and the purchase price.
• C) Because most bonds are not purchased for face value.
• D) Because the current yield moves in the opposite direction from price.

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Definitions:

Young Adulthood

A developmental stage occurring from late teens or early twenties to the thirties, characterized by the pursuit of independence, identity, and personal relationships.

Integrity

The characteristic of being truthful and upholding high ethical standards, or the condition of being intact and unified.

Erikson

A psychologist known for his theory on psychological development across eight stages from infancy to adulthood, focusing on the impact of social experience.

Delay of Gratification

The capacity to forego an instant gratification in favor of a future benefit.