Which One of the Following Relationships Is Stated Correctly

question 85

Multiple Choice

Which one of the following relationships is stated correctly?

• A) The coupon rate exceeds the current yield when a bond sells at a discount.
• B) The call price must equal the par value.
• C) An increase in market rates increases the market price of a bond.
• D) Decreasing the time to maturity increases the price of a discount bond, all else constant.
• E) Increasing the coupon rate decreases the current yield, all else constant.

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Definitions:

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of the strategies chosen by other players.

Dominant Strategy

A strategy in game theory that is the best for a player to follow, regardless of what the opponent does.

Maximin Strategy

A decision-making rule used in uncertain situations, aiming to select the option with the least possible loss or the maximum of the minimum gains.

Dominant Strategy

A strategy that is the best for a player in a game, regardless of the strategies chosen by other players.