Which of the Following Statements About Bond Yields Is True

question 51

Multiple Choice

Which of the following statements about bond yields is true?

• A)If a bond is selling at a discount, the yield to call is a better measure of return than 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)If a coupon bond is selling at par, its current yield equals its yield to maturity.
• D)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:

Biological View

An approach or perspective that emphasizes the role of genetics and biological processes in understanding human behavior and mental processes.

Unipolar Depression

A major depressive disorder characterized by a persistent feeling of sadness or a lack of interest in outside stimuli, without the manic episodes associated with bipolar disorder.

Biological Factors

Elements within an organism’s biological system, including genetic, neurological, or physical conditions, that influence its behavior, function, and development.

Cyclothymic Disorder

A mood disorder characterized by chronic, fluctuating mood disturbances involving periods of hypomania and mild depression.