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.

---

Definitions:

Rank Order

A sequential arrangement of items, individuals, or values according to their level of importance, hierarchy, or superiority.

Groupthink

a psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Advocate

A person who publicly supports or recommends a particular cause or policy.

Brainstorming

A collaborative idea generation process where participants freely share creative solutions and thoughts without immediate criticism.