If a bonds yield to maturity exceeds its coupon rate the


Which of the following statements is most correct?

A. If a bond's Yield to Maturity exceeds its coupon rate, the bond's current yield must also exceed its coupon rate. If a bond's Yield to Maturity exceeds its coupon rate, the bond's current market price must also exceed its maturity value.

B. 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 rate.

C. The first two answers are correct, but not the third.

D. All three of the first three answers are correct.

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Financial Management: If a bonds yield to maturity exceeds its coupon rate the
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