Multiple Choice: Bond K is selling at par with a 5% coupon. Bond L is selling for $1,030. Bond M is selling for $960 and has a YTM of 5.5%. Bonds K, L, and M are of similar quality and all mature in 6 years. Bonds K and L are noncallable, but Bond M is callable in 2 years fro $1,100. Based on this information, which of the following statements is (are) CORRECT?

1 - Bond L's coupon is less than 5%

2 - Interest rates have increased since Bond K was issued

3 - Bond M's current yield is 4.9%

4 - Bond M's YTC is 11.8%

A - 1 and 3

B - 2 only

C - 3 only

D - 1, 2, 3, and 4