Which of the following statements is MOST correct Select one

Which of the following statements is MOST correct? Select one: If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of the bond\'s coupon rate. If a bond\'s yield to maturity exceeds its coupon rate, the bond\'s current yield (interest yield) must also exceed its coupon rate. If a bond\'s yield to maturity exceeds its coupon rate, the bond\'s price must be less than its face value. Answers B and C are correct.

Solution

The correct answer is Option C

The first option is not valid in the case of zero coupon bond

The second option is not everytime correct, since there can be cases where the curreny yield is less than the coupon rate