bond a has a seven year maturity with a 5% annual coupon and a yield of 6%. Bond B has a 12 year maturity with a 5% annual coupon and a yield of 6. If both bonds have the same par. value, what must be true about the two bonds

A. Bond A is more valuable than B

B. Bond A has greater interest rate risk than B

C . Bond B must have greater default risk than A

D. none of the above is necessarily true

When a bond's yield to maturity is higher than the bonds coupon rate, the bond:

A. has a high risk of default

B. Is selling at a premium

C. has reached its maturity date

D. Is priced par

E. is selling at a discount