Which of the Following Statements About Bonds Is Most Correct

question 48

Multiple Choice

Which of the following statements about bonds is most correct?

• A) The current yield on a bond is fixed over the life of the bond.
• B) The coupon rate on bond changes periodically on most long-term bonds,
• C) The yield to maturity on a bond is fixed as long as the bond is held until maturity.
• D) The price of a bond increases as the market interest rates increase.

---

Definitions:

Generalized Anxiety Disorder

A chronic condition characterized by excessive, uncontrollable worry about everyday events.

Dissociative Disorder

A disorder in which, under unbearable stress, consciousness becomes dissociated from a person’s identity or her or his memories of important personal events, or both.

Conversion Disorder

Conversion Disorder is a psychological condition in which emotional distress or unconscious conflict is expressed through physical symptoms, without a medical cause.

Social Phobia

A persistent and overwhelming fear of social situations, leading to significant anxiety and avoidance behavior.