Which of the Following Statements Is CORRECT

question 91

Multiple Choice

Which of the following statements is CORRECT?

• A) all else equal, an increase in interest rates will have a greater effect on the prices of short-term than long-term bonds.
• B) all else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds.
• C) if a bond's yield to maturity exceeds its coupon rate, the bond's price must be less than its maturity value.
• D) if a bond's yield to maturity exceeds its coupon rate, the bond's current yield must be less than its coupon rate.
• E) 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 rates.

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Definitions:

Sexual Harassment

Unwanted sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that can affect an individual's employment, interfere with their work performance, or create a hostile work environment.

Conflicts Of Interest

Situations where an individual's or organization's personal interests could improperly influence the performance of their professional duties or responsibilities.

Customer Confidence

The trust and belief that customers have in a company and its products or services.

Ethical Climate

The collective understanding within an organization of what is considered morally right or wrong, influencing ethical decision-making.