Which of the Following Statements About Yield Measures Is True

question 8

Multiple Choice

Which of the following statements about yield measures is true?

• A) Nominal yield measures the current income rate.
• B) Realized yield measures the expected rate of return for a bond likely to be sold before maturity.
• C) Current yield measures the coupon rate.
• D) If the bond sells at a price in excess of its par value, the yield to maturity and the current yield are equal.

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Definitions:

Corporate Corruption

Unethical practices by individuals in power within corporations, often involving bribery, embezzlement, or manipulation of financial statements.

Financial Scandal

An event where fraudulent, illegal, or unethical financial practices are exposed, often leading to public outrage and legal consequences.

Federal Trade Commission

The Federal Trade Commission is a U.S. federal agency tasked with protecting consumers and ensuring a strong competitive market by preventing unfair, deceptive, or anticompetitive business practices.

Anti-Trust Enforcement

Government actions aimed at preventing or breaking up monopolies and other forms of market dominance that restrict competition.