Which Statement Regarding Yield Is True

question 88

Multiple Choice

Which statement regarding yield is true?

• A)A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.
• B)If a bond sells at par, then its current yield will be less than its yield to maturity.
• C)If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
• D)A discount bond's price declines each year until it matures, when its value equals its par value.

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Definitions:

Jomon Ceramics

Pottery produced in ancient Japan during the Jomon period, characterized by intricate patterns made by impressing cord into the clay before firing.

Shang Bronzes

Ancient Chinese bronze artifacts, primarily ritual vessels and weaponry, produced during the Shang dynasty (circa 1600–1046 BCE).

Kofun Period

An era in Japanese history (approximately 3rd to 6th centuries CE) characterized by the construction of large tomb mounds known as kofun.

Sarcophagi

Stone coffins, typically adorned with sculptures and inscriptions, used primarily in ancient civilizations for the burial of the dead.