Which of the following statements is correct regarding bonds? 0 A. Bonds with high yields reect high risk instruments. 0 B. An increase in the market interest rate would result in an increase in the present value of the bond. 0 c. A decrease in market interest rate would increase a bond's yield. 0 D. The equilibrium market price of a bond is always smaller than the present value of that bond. Consider a Hydro Quebec bond with a face value of $1000, and a present value of $1136. If this bond is offered for sale at $1030, then 0 A. excess supply of this bond will drive the price down until it reaches its face value. 0 B. individuals will purchase the bond at the offer price which will drive down the price further. 0 C. Hydro Quebec will be forced to change the face value of the bond. 0 D. the equilibrium market price of this bond has been achieved. 0 E. excess demand for this bond will drive the price up until it reaches its equilibrium market price of $1 136