Which of the following statement is correct? All the answers are incorrect. When the YTM is equal to the coupon rate, the bond sells at a premium over face value. A bond's market price depends on its yield to maturity and when the YTM is greater than the coupon rate, the bond sells at a premium over face value. Cash flows for a bond consist of dividend payments and the price received for the eventual sale of the sharE. Cash flows from a bond with a positive coupon rate consist of periodic interest payments and the face value payment at maturity.