Which Statement Regarding Bond Prices Is True

question 126

Multiple Choice

Which statement regarding bond prices is true?

• A)If a coupon bond is selling at par, its current yield equals its yield to maturity.
• B)If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.
• C)If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.
• D)If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium.

---

Definitions:

Energy Management

The practice of controlling and optimizing one's energy levels through various strategies to improve productivity, wellbeing, and overall performance.

McDonalds

A global fast-food chain recognized for its burgers, fries, and quick-service restaurants spread across the world.

Stakeholders

Parties interested or affected by the actions of a business or organization, including employees, customers, investors, and communities.

Colleges

Institutions of higher education and learning, where students pursue various degrees across multiple fields of study.