Which of the Following Statements Is CORRECT

question 79

Multiple Choice

Which of the following statements is CORRECT?

• A) Assume that two bonds have equal maturities and are of equal risk,but one bond sells at par while the other sells at a premium above par.The premium bond must have a lower current yield and a higher capital gains yield than the par bond.
• B) A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.
• C) If a bond sells at par,then its current yield will be less than its yield to maturity.
• D) If a bond sells for less than par,then its yield to maturity is less than its coupon rate.
• E) A discount bond's price declines each year until it matures,when its value equals its par value.

---

Definitions:

Malthusian Theorem

A principle asserting that population growth tends to outpace the growth of food supply, leading to periodic famine, poverty, and population checks such as disease and war.

Conservation

The protection and preservation of the natural environment and wildlife, ensuring sustainable use of resources for future generations.

Conservation Era

A period of American environmental history, primarily in the late 19th and early 20th centuries, marked by increasing awareness and efforts to conserve natural resources.

Postmodern Environmentalism

A movement or perspective that critiques traditional environmentalism, emphasizing the role of ideology, media, and consumer culture in shaping environmental issues.