Which of the Following Statements Is Correct

question 130

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.

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Definitions:

Hiring

The action of starting a legal relationship between an employer and employee where the employee performs work under certain conditions in exchange for remuneration.

Union Membership

The state or condition of being a member of a labor union, which represents workers in specific industries or professions in negotiations over wages, benefits, and working conditions.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

World War II

World War II was a global conflict lasting from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.