Which of the Following Statements Is CORRECT

Which of the following statements is CORRECT?

A) A bond is likely to be called if its market price is below its par value.
B) 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.
C) A bond is likely to be called if its market price is equal to its par value.
D) A bond is likely to be called if it sells at a discount below par.
E) A bond is likely to be called if its coupon rate is below its YTM.

Correct Answer:

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