Which of the Following Statements Is CORRECT

question 38

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Celiac Trunk

A major artery arising from the abdominal aorta that supplies blood to the stomach, spleen, and liver.

Stomach

A muscular organ in the gastrointestinal tract that breaks down food using stomach acid and enzymes.

Liver

A vital organ located in the upper right quadrant of the abdomen, involved in numerous metabolic processes including detoxification, protein synthesis, and the production of bile.

Spleen

An organ located in the abdomen that is involved in filtering blood, producing white blood cells, and removing old red blood cells.