Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A) Bond prices and interest rates move in the same direction,i.e. ,if interest rates rise,so will bond prices.
• B) The market price of a discount bond will approach the bond's par value as the maturity date approaches.Barring changes in the probability of default,there is no way the value of the bond can fail to increase each year as the time to maturity approaches.
• C) The "current yield" on a noncallable discount bond will normally exceed the bond's yield to maturity.
• D) The "current yield" on a noncallable discount bond will normally exceed the bond's coupon interest rate.

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Definitions:

Compensation Method

A strategy or approach used to calculate and distribute payment or rewards to employees or partners.

Negative Consequences

The potential adverse outcomes or risks that can result from a decision or action, often discussed in sales to motivate a purchase decision.

Valid Objection

A substantial and justifiable concern raised by a potential customer during the sales process.

Compensation Method

The approach a company takes to remunerate its employees, which can include salary, wages, bonuses, profit sharing, or non-monetary benefits.