Three students have been studying for the finance exam . Each of them has summarized some key points in the bond pricing and yield Which one of the following is ( are ) correct Mike : " The bond must be priced at par value a bond's coupon rato equal to both the bond's current yield and its yield to maturity Gabrille : " two bonds , one premium and one discount , have identical yield - to - maturity , investor's of return on those bonds will be also identical . Only the return is distributed differently between current yield and capital gain / loss yield . " Frank : " The only payment that investors consider in pricing a zero - coupon bond Is its par value " O A Mike and Gabrille . Mike and Frank . Gabrille and Frank D. All of the above .