Which of the Following Statements Is CORRECT

question 75

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.

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Definitions:

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and activities like temperature control, hunger, and sleep cycles.

Posterior Pituitary

The rear portion of the pituitary gland that stores and releases hormones produced by the hypothalamus, including oxytocin and vasopressin.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response; also affects mood.

Calcitonin

Thyroid hormone that encourages bones to take up and incorporate calcium.