Question 9 (10 points)

Which of the following statements is CORRECT?

Question 9 options:

A)	A bond is likely to be called if its market price is below its par value.

B)	Even if a bond's YTC exceeds its YTM, an investor with an investment horizon longer than the bond's maturity would be worse off if the bond were called.

C)	A bond is likely to be called if its market price is equal to its par value.

D)	A bond is likely to be called if it sells at a discount below par.

E)	A bond is likely to be called if its coupon rate is below its YTM.