n NISM Certifications
NSM General NISM
Medium

If an investor has the choice between two bonds issued by the same entity, maturing at the same time, but paying different coupons, which should they select?

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

Options

  1. A

    Higher market price

  2. Lower market price

    Correct answer

  3. C

    Any, as returns are same

  4. D

    Cannot judge based on price alone

Why this is the answer

Lower price usually indicates higher yield to maturity.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.