Which of the Following Statements Is NOT CORRECT

question 3

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) all else equal, bonds with longer maturities have more interest rate (price) risk than bonds with shorter maturities.
• B) if a bond is selling at its par value, its current yield equals its yield to maturity.
• C) if a bond is selling at a premium, its current yield will be greater than its yield to maturity.
• D) all else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons.
• E) if a bond is selling at a discount to par, its current yield will be less than its yield to maturity.

Understand the characteristics and implications of dilutive securities on earnings per share calculations.

Comprehend the consolidation adjustments required for intercompany bond transactions and their impacts on financial statements.

Calculate consolidated basic and diluted earnings per share.

Analyze the effects of stock transactions and noncontrolling interests on the investment accounts and equity sections of the parent company.

---

Definitions:

Hidden Objection

An objection that disguises the actual objection with either silence or triviality.

Salesperson's Action

Refers to the steps or initiatives taken by a salesperson to promote and sell a product or service, including communication, presentation, and negotiation.

Trial Close

A trial close is a sales technique in which the salesperson asks a potential customer a question or series of questions to gauge the customer's readiness to buy, before making the actual close.

Psychological Objection

A hidden objection based on the prospect’s attitudes.