Which of the following relationships holds TRUE if a bond sells at a discount?

A. Bond Price < Par Value and YTM > coupon rate
B. Bond Price > Par Value and YTM > coupon rate
C. Bond Price > Par Value and YTM < coupon rateD. Bond Price < Par Value and YTM < coupon rate

Correct Answer: Bond Price < Par Value and YTM > coupon rate ✔

Last Updated: December 17, 2016