In Which of the Following Situations Would the Yield to Worst

question 76

Multiple Choice

In which of the following situations would the yield to worst for a certain bond be that bond's yield to call?
I. The bond's coupon payments are high relative to market yields.
II. The bond price is at a discount.
III. The likelihood of the bond being called is high.

• A) I only
• B) II only
• C) I and II
• D) I and III

---

Definitions:

Long Run Market Supply Curve

A curve showing the relationship between the price of a good and its supply over a longer period, when all input factors can be varied.

Limited Quantities

A restricted amount of a product or resource available for consumption or use.

Perfectly Elastic

Perfectly elastic describes a situation in market demand where consumers will only buy at one price and any deviation from this price leads to zero demand for the good or service.

Economic Profits

The difference between a firm’s total revenue and its total costs, including both explicit and implicit costs.