Which of the Following Statements Is CORRECT

question 8

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:

Shaping

A process in psychology where desired behavior is taught by reinforcing any steps that are closer to the target behavior.

Stimulus Assimilation

The process by which individuals integrate new information into their existing knowledge or frameworks.

National Brand

A product brand that is marketed and recognized across an entire country.

Private Brand

also known as a store brand or own brand, is a product that is owned, produced, and sold exclusively by a particular retailer.