Which of the Following Statements Is CORRECT

question 84

Multiple Choice

Which of the following statements is CORRECT?

• A) if rates fall after its issue, a zero coupon bond could trade at a price above its par value.
• B) if rates fall rapidly, a zero coupon bond's expected appreciation could become negative.
• C) if a firm moves from a position of strength toward financial distress, its bonds' yield to maturity would probably decline.
• D) if a bond is selling at a premium, this implies that its yield to maturity exceeds its coupon rate.
• E) if a coupon bond is selling at par, its current yield equals its yield to maturity.

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Definitions:

Langue

Langue is a term used in linguistics, referring to the abstract, systematic rules and conventions of a language, as opposed to parole, the actual use of language in context.

Signs

Symbols or objects that convey meaning beyond their immediate, literal sense, often used in communication.

Symbol Systems

Complex sets of symbols and meanings that are used by societies to communicate, interpret, and understand the world around them.

Linguistics

The scientific study of language and its structure, including the study of morphology, syntax, phonetics, and semantics.