which of the following statements is incorrect? a. the yields of bonds are always positive b. the coupon payment of a bond is a fixed percentage of the principle value of the bond c. for a bond holder, a rise in bond prices increases the return from holding bonds d. all of the answers are incorrect

which of the following statements is incorrect?
a. the yields of bonds are always positive
b. the coupon payment of a bond is a fixed percentage of the principle value of the bond
c. for a bond holder, a rise in bond prices increases the return from holding bonds
d. all of the answers are incorrect

Answer

• a. the yields of bonds are always positive
  Explanation:
  The period interest paid to the bond holders is counted as a fixed percentage of the face value and this percentage is known as the coupon rate. Not all bonds have a negative currency view. For instance, the yields of a bond may be positive for a bond whose interest are at will. Increase in bond happen in conjunction with the increase in return from holding accounts. A negative yield is when the total interest paid is less than the premium paid by the investor.

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