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5. Which of the following statements are true? 1. Bond prices are inversely related to market interest rates. II. A high coupon bond is more
5. Which of the following statements are true? 1. Bond prices are inversely related to market interest rates. II. A high coupon bond is more interest rate sensitive than a low coupon bond. III. The yield to maturity will be greater than the coupon rate when a bond is selling at a premium. IV. The coupon rate will be less than the yield to maturity when a bond sells at a discount. A. I and III only B. I and IV only C. Il and Ill only D. I and II only E. III and IV only
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