Colosseum Corporation issued a $5\%$ coupon bond four years ago at par value. The market interest rate on comparable bonds today is $7\%.$

Group of answer choices

This bond sells at a premium and the coupon rate is lower than the yield.

This bond sells at a discount and the coupon rate is higher than the yield.

This bond sells at a premium and the coupon rate is higher than the yield.

This bond sells at a discount and the coupon rate is lower than the yield.