Which of the Following Statements Is Correct

question 119

Multiple Choice

Which of the following statements is correct?

• A) Other things held constant,a callable bond would have a lower required rate of return than a noncallable bond.
• B) Other things held constant,a corporation would rather issue noncallable bonds than callable bonds.
• C) Reinvestment rate risk is worse from a typical investor's standpoint than interest rate price risk.
• D) If a 10-year,$1,000 par,zero coupon bond were issued at a price which gave investors a 10 percent rate of return,and if interest rates then dropped to the point where r_d = YTM = 5%,we could be sure that the bond would sell at a premium over its $1,000 par value.
• E) If a 10-year,$1,000 par,zero coupon bond were issued at a price which gave investors a 10 percent rate of return,and if interest rates then dropped to the point where r_d = YTM = 5%,we could be sure that the bond would sell at a discount below its $1,000 par value.

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Definitions:

Intimate Relationships

Close, personal connections between individuals, characterized by emotional depth and intimacy, which can include both romantic and platonic relationships.

Liberal Values

Principles that emphasize individual freedoms, rights, equality, and support for social justice and progressive changes in society.

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The dynamic exchange between a parent and their child, influencing the child's social, emotional, and cognitive development.

Same-Sex Couples

Romantic partnerships between two individuals of the same sex or gender identity.