A Bond's Price Will Be _______ When the Coupon Rate

A bond's price will be _______ when the coupon rate is higher than current market interest rates; _______ when the coupon rate is equal to the current market interest rates; and _______ when the coupon rate is less than the current market interest rates.

A) at a premium; equal to the face value; at a discount
B) at a premium; at a discount; equal to the face value
C) at a discount; at a premium; equal to the face value
D) equal to the face value; at a discount; at a premium

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