Which of the Following Statements Is CORRECT

question 78

Multiple Choice

Which of the following statements is CORRECT?

• A) a bond is likely to be called if its market price is below its par value.
• B) even if a bond's ytc exceeds its ytm, an investor with an investment horizon longer than the bond's maturity would be worse off if the bond were called.
• C) a bond is likely to be called if its market price is equal to its par value.
• D) a bond is likely to be called if it sells at a discount below par.
• E) a bond is likely to be called if its coupon rate is below its ytm.

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Definitions:

Life Expectancy

The average period that a person may expect to live.

Health Status

An individual or population’s overall level of health, considering various aspects such as physical, mental, and social well-being.

Less Stress

Experiencing a reduced level of physical or emotional tension or strain.

Symptoms

Signs or indications of a condition, disease, or change in the body’s normal functioning.