There are three bonds that mature at the same time, have the same par value, and are expected to pay their first annual coupon $1$ next year. The bonds are detailed in the below table.

Bond Yield to Maturity Coupon Rate

A r ca

B rb c

If ca $$ c and rb $>$ r$,$ then:

Bond A was riskier at the time of issue. Bond B is riskier now.

Bond A was riskier at the time of issue. Bond A is riskier now.

Bond B was riskier at the time of issue. Bond B is riskier now.

Bond B was riskier at the time of issue. Bond A is riskier now.