Which of the Following Statements Is Most Correct

Which of the following statements is most correct?

A) If a bond sells for less than par, then its yield to maturity is less than its coupon rate.
B) If a bond sells at par, then its current yield will be less than its yield to maturity.
C) Assuming that both bonds are held to maturity and are of equal risk, a bond selling for more than par with ten years to maturity will have a lower current yield and higher capital gain relative to a bond that sells at par.
D) Answers a and c are correct.
E) None of the answers above is correct.

Correct Answer:

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