Which of the following statements is CORRECT? If a coupon bond is selling at a premium, its current yield equals its yield to maturity. If a coupon bond is selling at par, its coupon payment equals its yield to maturity. If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium. If a bond's price is less than its par value it is sold at a premium. None of the answers are correct! Which of the following bonds will have the largest amount of interest rate risk (Risk that a bond's price will decline due to an increase in interest rates)? O A 10 percent coupon bond which matures in 10 years. O A 7 percent coupon bond which matures in 12 years. O A 9 percent coupon bond which matures in 10 years. None of the above A 12 percent coupon bond which matures in 7 years. When does the difference (spread) between arithmetic average returns and geometric average return increase? As lower the returns. None of the above As higher the volatility of the returns. As higher the credit rating of the investment! As longer the time horizon of the investment