Question
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?
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