If a Bond Is Selling at a Discount, Which of the Following

question 115

Multiple Choice

If a bond is selling at a discount, which of the following statements is correct?

• A) The yield to maturity must be greater than the coupon rate.
• B) The coupon rate must be greater than the yield to maturity.
• C) The bond must have a low bond rating.
• D) All of these choices are correct.

---

Definitions:

Unrelated Living Kidney Donation

The act of donating a kidney by a living person who has no genetic or familial relationship to the recipient.

Test Statistic

A value calculated from sample data during a hypothesis test, used to determine whether to reject the null hypothesis.

Statistically Significant

Describes a result that is unlikely to have occurred by chance alone, according to a predefined significance level.

Null Hypothesis

A hypothesis that states there is no effect or no difference, and it serves as the default assumption that is tested against the alternative hypothesis.