Last year Malko Enterprises issued 6-year bonds at par with annual coupon rate of 7.5%, payable semi-annually. These bonds currently sell for $1,050. Which of the following statements is incorrect?
a. The market interest rate must fall over the year.
b. An investor who purchased the bonds last year and sells them today has a holding period return greater than 7.5%.
c. The yield to maturity of Malko's bonds when issued last year was 7.5%.
d. An investor who purchases some Malko's bonds today should have a yield to maturity greater than 7.5%.