Which of the Following Statements Is Most Correct

question 92

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 both correct.
• E) None of the above answers is correct.