Which one of the following statements is true about a $1,000, 6% annual coupon bond that is selling for $1,012?
A) The current yield is less than 6%.
B) The current yield is 6%.
C) The yield-to-maturity is greater than 6%.
D) The yield-to-maturity is 6%.
Answer: A
You might also like to view...
What are the three basic factors that determine the market price of a product?
What will be an ideal response?
Researchers have worked on modeling the phases of negotiation. The various models fit into a simple structure of three phases, or stages. What are those three phases?
What will be an ideal response?
Which of the following costing methods combines the cost of units in beginning inventory with the current period costs to determine the unit production cost?
A) LIFO B) Average cost C) FIFO D) Direct
The ultimate goal of the "marketing concept" is:
A) product diversification B) customer satisfaction C) brand loyalty D) rising profit margins E) efficiency of production