Which of the Following Statements Is CORRECT

question 57

Multiple Choice

Which of the following statements is CORRECT?

• A) If the Federal Reserve unexpectedly announces that it expects inflation to increase,then we would probably observe an immediate increase in bond prices.
• B) The total yield on a bond is derived from dividends plus changes in the price of the bond.
• C) Bonds are generally regarded as being riskier than common stocks,and therefore bonds have higher required returns.
• D) Bonds issued by larger companies always have lower yields to maturity (due to less risk)than bonds issued by smaller companies.
• E) The market price of a bond will always approach its par value as its maturity date approaches,provided the bond's required return remains constant.

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Definitions:

Occupational Interest Inventory

A psychological assessment tool used to explore individuals' preferences and interests toward various professions or career paths.

Dictionary Of Occupational Titles

A publication that categorizes and describes over 20,000 different jobs and occupations, historically used in the United States for job classification.

Typical Interests

Common hobbies or activities that people engage in for enjoyment, relaxation, or satisfaction.

Vocational Choice

The process of selecting a career or profession based on personal preferences, strengths, and the assessment of future job opportunities.