Equinox Corporation issued a 4% bond four years ago at par value. The market interest rate on comparable bonds today is 3.5%.

A.

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

B.

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

C.

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

D.

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