n NISM Certifications
NSM General NISM
Medium

Assume two bonds are issued by an issuer with same maturity but different coupons. Which bond should an investor buy?

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Bond with a higher market price

  2. B

    Bond with a lower market price

  3. C

    Bonds cannot be judged based on their prices

  4. None of the above

    Correct answer

Why this is the answer

Price alone isn't sufficient; yield and risk factors matter.

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