Which of the Following Statements Is CORRECT

question 64

Multiple Choice

Which of the following statements is CORRECT?

• A) if a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.
• B) if interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.
• C) if a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium.
• D) if a coupon bond is selling at a premium, its current yield equals its yield to maturity.
• E) if a coupon bond is selling at par, its current yield equals its yield to maturity.

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Definitions:

Rinne Test

A hearing test using a tuning fork to compare air conduction to bone conduction of sound.

Vestibule

An anatomical space or cavity at the entrance of some structures, especially the central part of the bony labyrinth in the inner ear, involved in balance.

Cochlea

A spiral-shaped, fluid-filled inner ear structure essential for hearing.

Cochlear Nerve

A nerve responsible for transmitting auditory information from the cochlea of the inner ear to the brain.