If a security is sold at a lower yield than that at which it was purchased, the holder:
A) incurs no capital gain or loss.
B) makes a capital gain.
C) makes a capital loss.
D) It depends on the length of time remaining until maturity.

Question

Quizplus · Accepted Answer

When a security is sold at a lower yield than it was purchased, it indicates that the price of the security has increased, resulting in a capital gain for the holder.

If a Security Is Sold at a Lower Yield Than