Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A)If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of the bond's coupon rates.
• B)All else equal, an increase in interest rates will have a greater effect on the prices of short-term than long-term bonds.
• C)All else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds.
• D)If a bond's yield to maturity exceeds its coupon rate, the bond's price must be less than its maturity value.
• E)If a bond's yield to maturity exceeds its coupon rate, the bond's current yield must be less than its coupon rate.

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Definitions:

Neurons

Nerve cells specialized for transmitting electrical and chemical signals throughout the body and brain.

Synapse

a structure that permits a neuron (nerve cell) to pass an electrical or chemical signal to another neuron or to the target effector cell.

Electrical Activity

The movements of charged particles, such as electrons, which can occur within a variety of systems, including the neural circuits in the body.

Chemical Activity

The behavior of chemicals interacting with each other, including reactions that involve changes in molecular structure.