Which of the Following Statements Is CORRECT

question 80

Multiple Choice

Which of the following statements is CORRECT?

• A) If a bond is selling at a discount,the yield to call is a better measure of return than is the yield to maturity.
• B) 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.
• C) 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.
• D) If a coupon bond is selling at par,its current yield equals its yield to maturity,and its expected capital gains yield is zero.
• E) 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.

---

Definitions:

Temperature Measurement

The process of determining the body's internal heat level using various devices, important for diagnosing and monitoring health conditions.

Assessing Changes

The process of evaluating alterations or trends over time in conditions, operations, or environments to inform decisions or actions.

Pulse Pressure

The difference between the systolic and diastolic blood pressure readings, reflecting the force that the heart generates each time it contracts.

Blood Pressure

The force of circulating blood on the walls of blood vessels, measured as systolic and diastolic pressures, crucial for diagnosing cardiovascular conditions.