Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A) When investing in coupon bonds,holding constant for risk,the bond with the highest yield is preferred.
• B) The yield measures the expected return on a coupon bond.
• C) The yield should not be used as the sole determinate for selecting among bonds for investment purposes.
• D) Bond yields are always increasing in the bond's maturity.
• E) A coupon bond's yield always exceeds the spot rate of interest.

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