An Investor Plots the Yield Curve for AAA Corporate Bonds

Multiple Choice

An investor plots the yield curve for AAA corporate bonds and discovers that the yield on BGA Inc.'s bonds is above that of other AAA corporate bonds with the same maturity. If BGA Inc.'s bonds are correctly classified as AAA, the investor will profit by:

A) Buying BGA Inc. bonds and selling them when the yield falls
B) Buying BGA Inc. bonds and selling them when the price falls
C) Selling BGA Inc. bonds short and repurchasing them when the price rises
D) Selling BGA Inc. bonds short and repurchasing them when the yield rises
E) It is impossible to profit from this because markets are perfectly efficient