Which of the Following Statements Is CORRECT

question 65

Multiple Choice

Which of the following statements is CORRECT?

• A) On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss.
• B) On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest.
• C) If a coupon bond is selling at par, its current yield equals its yield to maturity.
• D) 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.
• E) If a bond is selling at a discount, the yield to call is a better measure of return than the yield to maturity.

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Definitions:

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing economic data related to labor market activity, working conditions, and price changes.

True Unemployment Rate

A measure of the actual number of unemployed individuals, considering those who have stopped looking for work or are underemployed.

Destination

The end location or target to which data or a packet is being sent within a network or system.