Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) A bond is likely to be called if its coupon rate is below its YTM.
• B) A bond is likely to be called if its market price is below its par value.
• C) Even if a bond's YTC exceeds its YTM,an investor with an investment horizon longer than the bond's maturity would be worse off if the bond were called.
• D) A bond is likely to be called if its market price is equal to its par value.
• E) A bond is likely to be called if it sells at a discount below par.

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Definitions:

Openness

Refers to the quality of being receptive and transparent to new ideas, experiences, and information.

Customer Service Representatives

Individuals who interact with customers to handle complaints, process orders, and provide information about products or services.

Openness

A personality trait that features characteristics such as imagination and insight, and those high in this trait also tend to have a broad range of interests.

Agreeableness

A personality trait characterized by warmth, kindness, and cooperativeness, influencing how an individual interacts with others.