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Bond A has a coupon rate of 10% and a yield of 13%. Bond B has coupon rate of 5% and sells for the same

  1. Bond A has a coupon rate of 10% and a yield of 13%. Bond B has coupon rate of 5% and sells for the same price as Bond A. Both bonds have the same face value and maturity. From this, which of the followings is the most inappropriate statement?

    A.

    The yield of Bond B is greater than 5%.

    B.

    The yield of Bond B is less than 10%.

    C.

    Both bonds are discount bonds.

    D.

    Bond A is a discount bond.

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