Which of the Following Statements Is Most Correct

question 110

Multiple Choice

Which of the following statements is most correct?

• A) If a bond is selling for a premium, this implies that the bond's yield to maturity exceeds its coupon rate.
• B) If a coupon bond is selling at par, its current yield equals its yield to maturity.
• C) If rates fall after its issue, a zero coupon bond could trade for an amount above its par value.
• D) Statements b and c are correct.
• E) None of the statements above is correct.

---

Definitions:

Complete

To finish all parts of a task or duty fully and to satisfaction.

Contract Condition

A provision in a contract that specifies a requirement or event that must occur or be met for the contract or a part of it to be fulfilled or enforced.

Discharged

In legal terms, refers to the completion or termination of an obligation, such as a debt or duty, often resulting in release from responsibility.

Discharge a Contract

The termination of a contractual obligation, either through fulfillment of the contract terms, mutual agreement, or other legal means.