Which of the Following Statements Is CORRECT

question 22

Multiple Choice

Which of the following statements is CORRECT?

• A) A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.
• B) If a bond sells at par, then its current yield will be less than its yield to maturity.
• C) If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
• D) A discount bond's price declines each year until it matures, when its value equals its par value.
• E) Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par.The premium bond must have a lower current yield and a higher capital gains yield than the par bond.

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Definitions:

Adaptive Value

The degree to which a trait or behavior helps an organism survive and reproduce in its environment.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Biological Perspective

An approach to psychology focusing on the physiological causes of behavior and the impact of genetics and biological processes.

Interrelations

The way in which two or more things or phenomena are related or connected to each other.