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.

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Definitions:

Default Judgement

Default Judgement is a binding judgment in favor of either party based on some failure to take action by the other party, most often the failure to respond to a court summons.

Motion

A formal request made to a court for an order or ruling in favor of the applicant.

Notice of Motion

A formal document filed with a court to inform parties about a motion, outlining the nature of the motion and when it will be presented.

Scheduling Order

A court mandate that sets the timeline for various stages of a lawsuit, including deadlines for filings, discoveries, and trial dates.