Which of the Following Statements Is NOT CORRECT

question 93

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) All else equal, bonds with longer maturities have more interest rate (price)risk than bonds with shorter maturities.
• B) If a bond is selling at its par value, its current yield equals its yield to maturity.
• C) If a bond is selling at a premium, its current yield will be greater than its yield to maturity.
• D) All else equal, bonds with larger coupons have greater interest rate (price)risk than bonds with smaller coupons.
• E) If a bond is selling at a discount to par, its current yield will be less than its yield to maturity.

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Definitions:

Cognitive Therapy

A type of psychotherapy aimed at changing negative patterns of thinking, thereby altering emotions and behaviors.

Self-Fulfillment

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Self-Acceptance

The understanding and embracing of one's own strengths and weaknesses without undue self-criticism.

Systematic Desensitization

A therapeutic technique used to help patients overcome phobias and anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.