Which Statement Regarding Bonds Is True

question 144

Multiple Choice

Which statement regarding bonds is true?

• A)The total yield on a bond is derived from dividends plus changes in the price of the bond.
• B)Bonds are riskier than common stocks and therefore have higher required returns.
• C)Bonds issued by larger companies always have lower yields to maturity (less risk) than bonds issued by smaller companies.
• D)The market value 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:

Lucid Dreams

Dreams in which the dreamer is aware that they are dreaming and can often control the dream's content.

Hidden Meaning

A meaning that is not explicitly stated but can be discerned from the context or the underlying layers of a message or object.

Own Behavior

The behavior or response of a person when influenced by outside or inside factors.

Common Theme

A recurring or unifying subject, idea, or motif across various works of literature, art, or discussion.