Which of the Following Statements Is CORRECT

question 53

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.

---

Definitions:

John T. Noonan

A legal scholar and ethicist known for his contributions to the discussions on human rights and moral theology.

Christian Tenets

Fundamental beliefs or principles that form the foundation of Christianity, such as the belief in one God, the resurrection of Jesus Christ, and the Holy Trinity.

Abortion Restrictions

Legal or societal limits imposed on the ability to obtain an abortion, often varying significantly by region or country.

Fertilized Human Ova

Human eggs that have been inseminated by sperm, marking the beginning of human development.