As the term of a bond approaches zero, all other factors held constant, the price of the bond

A. approaches the coupon B. decreases C. remains constant D. approaches par E. increases

Which statement is true?

A. Financial statements reflect economic costs.

• B. Year-over-year decreases in current liabilities are sources of cash.
• C. A stock with a beta of 1.00 has the total risk of the market portfolio.
• D. Shareholders have the prior claim to the cash flows of a corporation.
• E. None of the above are true.