Which of the Following Statements Is Correct

question 100

Multiple Choice

Which of the following statements is correct?

• A)The total return on a bond during a given year consists only of the coupon interest payments received.
• B)The price of a discount bond will increase over time, assuming that the bond's yield to maturity remains constant.
• C)For a given firm, its debentures are likely to have a lower yield to maturity than its mortgage bonds.
• D)When large firms are in financial distress, they are almost always liquidated, whereas smaller firms are generally reorganized.

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