Which of the following statements is most correct? Question 13 options: Rising inflation makes the actual yield to maturity on a bond greater than the quoted yield to maturity which is based on market prices. The yield to maturity for a coupon bond that sells at its par value consists of an interest yield and expected capital gains yield. On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss. The market value of a bond will always approach its par value as its maturity date approaches. All of the statements above are false.

The yield to maturity for a coupon bond that sells at its par value consists of an interest yield and expected capital gains yield.

Explanation: A bond is a Financial instrument that enables Organisations or government to borrow money from the investing public to pay at a later date which is known as the maturity date,bonds are usually issued in order to finance certain projects which are expected to yield profits or benefits in the future.

A COUPON BOND IS A DEBT INSTRUMENTS WITH COUPON ATTACHED TO IT, IN THIS TYPE OF BOND THE OWNER OF THE BOND IS NOT KNOWN TO THE ISSUER. If a bond is priced at par, then the yield to maturity of the bond is equal to the bond's interest rate.

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to