Two investors are considering the purchase of Corporation XYZ bonds. The bonds are selling at a price of $1,100 each. Investor A decides to buy the bonds and Investor B does not buy the bonds.

a.

Investor A must have a required return lower than the required return for Investor B.

b.

The yield to maturity for Investor A must be higher than the yield to maturity for Investor B.

c.

The yield to maturity for Investor A must be less than the yield to maturity for Investor B.

d.

The yield to maturity for this bond must be higher than the coupon rate.