Which of the Following Statements Is CORRECT

question 26

Multiple Choice

Which of the following statements is CORRECT?

• A) if a coupon bond is selling at a discount, then the bond's expected capital gains yield is negative.
• B) if a bond is selling at a discount, the yield to call is a better measure of the expected return than the yield to maturity.
• C) the current yield on bond a exceeds the current yield on bond b. therefore, bond a must have a higher yield to maturity than bond b.
• D) if a coupon bond is selling at par, its current yield equals its yield to maturity.
• E) if a coupon bond is selling at a premium, then the bond's current yield is zero.

Identify the roles and criticisms of multinational corporations (MNCs) in the global economy.

Understand the mechanisms of international trade and its regulation.

Explain the significance of consumer rights and ethical consumerism in global markets.

Recognize the importance of ethical standards in global business, including human rights and labor practices.

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Definitions:

Horizontal Analysis

A financial statement analysis method that compares line items in a statement to those of previous periods to determine changes over time.

Financial Statements

Formal records of the financial activities of a business, person, or other entity, providing an overview of financial performance and position.

Vertical Analysis

A financial statement analysis method where each entry for each of the three major categories (assets, liabilities, and equity) is represented as a proportion of the total.

Common Size Analysis

A financial analysis technique that converts each line of financial statement data to a percentage of a base amount.