Which of the following statements is CORRECT?
A. If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of their coupon rates.
B. All else equal, an increase in interest rates will have a greater effect on the prices of short-term than long-term bonds.
C. All else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds.
D. If a bond's yield to maturity exceeds its coupon rate, the bond's price must be less than its maturity value.
E. If a bond's yield to maturity exceeds its coupon rate, the bond's current yield must be less than its coupon rate.
Answer: D
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The fixed overhead spending variance
A) is usually not significant. B) is made up of many individual items. C) is the difference between actual costs and budgeted costs. D) merits investigation only if the variance is material. E) is all of these.
Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed? Dept.Sales Cost of Goods Sold Direct Expenses Indirect Expenses 1$1,000,000 $700,000 $100,000 $80,000 2 400,000 150,000 40,000 100,000 3 700,000 300,000 150,000 20,000
A. Dept. 1; $1,000,000. B. Dept. 2; $100,000. C. Dept. 2; $150,000. D. Dept. 3; $400,000. E. Dept. 3; $250,000.
Employment laws do not apply to independent contractors.
Answer the following statement true (T) or false (F)
You guide employees and make sure their work meets certain criteria in a company. Which of the following perspectives does this give you on the company?
A) customer B) manager C) employee D) owner/investor