Which of the Following Statements Is Most Correct

question 82

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 are correct.

---

Definitions:

Unemployment Insurance

Financial support provided by the state to those who are out of work not because of their own doing.

Laid Off

The temporary or permanent dismissal of employees from their job due to economic downturns or company restructuring.

Entered the Labor Force

Describes individuals who have reached working age and are actively seeking employment or are currently employed.

Sectoral Shifts

Changes in the economic landscape that affect specific sectors of the economy, leading to shifts in labor demand and supply.