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Which of the following statements is CORRECT? The total yield on a bond is derived from dividends plus changes in the price of the bond.

Which of the following statements is CORRECT?

The total yield on a bond is derived from dividends plus changes in the price of the bond.

Bonds are generally regarded as being riskier than common stocks, and therefore bonds have higher required returns.

Bonds issued by larger companies always have lower yields to maturity (due to less risk) than bonds issued by smaller companies.

A bond is likely to be called if its market price is below its par value.

A bonds current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.

Which of the following statements is CORRECT?

The total yield on a bond is derived from dividends plus changes in the price of the bond.

Bonds are generally regarded as being riskier than common stocks, and therefore bonds have higher required returns.

Bonds issued by larger companies always have lower yields to maturity (due to less risk) than bonds issued by smaller companies.

A bond is likely to be called if its market price is below its par value.

A bonds current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.

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