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A corporate bond is currently trading at a price that is above its par value. Which of the following statements is the BEST explanation of

A corporate bond is currently trading at a price that is above its par value. Which of the following statements is the BEST explanation of why this is happening?

  • A.The yield to maturity (YTM) is equal to investors' average required return on this bond.
  • B.Interest rates must have increased since the bond was issued.
  • C.The bond's coupon rate is higher than its yield to maturity (YTM).
  • D.This bond has become relatively more risky.

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