General Studies · Corporate Finance and Valuation

Consider the following statements regarding finance and accounting: Statement 1: When a bond is purchased at a discount, its yield to maturity is higher than the current yield because the investor receives periodic interest and capital appreciation up to the par value at maturity. Statement 2: The P/E Ratio is a static measure that always indicates the absolute intrinsic value of a company regardless of prevailing market interest rates. Statement 3: Standard Costing is a management tool that compares estimated costs with actual costs to identify variances in repetitive, stable manufacturing environments. Statement 4: If a bond's coupon rate equals the required market yield, its market price will equal its par value. Which of the following assessments is correct?