Which of the Following Statements Is Correct

question 15

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 the bond's coupon rates.
• B)All else being equal, an increase in interest rates will have a greater effect on the prices of short-term than long-term bonds.
• C)All else being 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.

---

Definitions:

Lumbar Vertebrae

The five vertebrae situated between the thoracic vertebrae and sacral spine, forming part of the lower back and supporting much of the body's weight.

Anatomical Variation

Anatomical variation refers to the natural differences in the shape, size, and structure of a body part among different individuals.

Right Iliac Region

An area of the abdomen located in the lower right part, containing parts of the small and large intestines, and for some people, the appendix.

Right-Lower Quadrant

An area of the abdomen that contains parts of the small and large intestines, right ovary and fallopian tube in women, and the appendix.