Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Net Efficiency

A measure of the effectiveness of an operation, typically calculated as the ratio of useful output to total input, factoring in losses and waste.

Remittances

Money sent by migrants to their home country, often to support family members.

Migration

The movement of people from one place to another with the intention of settling temporarily or permanently in the new location.

Wage Equalization

The concept of aligning wages or salaries across different regions, industries, or roles to achieve fairness and balance.