Which of the Following Statements Is Correct

Question 67
Multiple Choice

Which of the following statements is CORRECT? A) A bond is likely to be called if its coupon rate is below its YTM. B) A bond is likely to be called if its market price is below its par value. C) Even if a bond's YTC exceeds its YTM,an investor with an investment horizon longer than the bond's maturity would be worse off if the bond were called. D) A bond is likely to be called if its market price is equal to its par value. E) A bond is likely to be called if it sells at a discount below par.