Which of the Following Statements Is Most Correct

question 83

Multiple Choice

Which of the following statements is most correct?

• A) If a bond's yield to maturity exceeds its coupon rate, the bond's current yield must also exceed its coupon rate.
• B) If a bond's yield to maturity exceeds its coupon rate, the bond's price must be less than its maturity value.
• C) 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 rate.
• D) Answers b and c are correct.
• E) None of the answers above is correct.

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Definitions:

Seasonal Pattern

Variations in mood and behavior that occur at the same time every year, often related to changes in seasons and daylight.

Methadone

A synthetic opioid used medically as a painkiller and in the treatment of heroin addiction.

Morphine

A potent opiate analgesic drug derived from the opium poppy used for pain relief.

Heroin

An opioid drug derived from morphine, highly addictive and illegal, commonly used for its euphoric effects.