Which One of the Following Statements Is Correct

question 51

Multiple Choice

Which one of the following statements is correct?

• A)Investors know the rate of return they will earn with certainty provided they hold bonds until they mature.
• B)Reinvestment risk causes realized yields to differ from promised yields.
• C)Realized yields generally equal promised yields as long as a bond is not called.
• D)Redeeming a bond early helps ensure an investor earns the promised yield.
• E)Realized yields cannot exceed promised yields.

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Definitions:

Nearsighted

A condition in which close objects appear clearly, but distant objects are blurry, also known as myopia.

Light Focuses

Refers to the convergence, bending, or direction of light rays to a point, which is fundamental in optics for creating images in cameras, telescopes, and the human eye.

Retina

A thin layer of tissue at the back of the eye that contains cells sensitive to light, which convert images into electrical signals sent to the brain.

Receptors

are specialized cells or proteins that detect and respond to external signals such as chemicals, light, or pressure.