Two different bonds have equal risk and share the same debt rating. One is selling at a premium while the other is selling at a discount. Which of the following is true?

Group of answer choices

The expected return on the premium bond equals the annual coupon payment divided by the bonds current price.

The yield on both bonds is determined in the primary market.

The expected return on the discount bond is the current yield plus a capital loss.

The yield on both bonds should equal the same yield to maturity.