A bond has a par value of $1,000 and 12 years to maturity, and makes coupon payments of $60 every 12 months. Which of the following is/are true:

 

 

I At a market rate of interest of 6%, the bond sells at par

 

 

 

II At a market rate of interest of 7% the bond sells at a premium

 

 

 

III If the bond sells at par, the coupon rate, YTM and Current Yield are all equal

 

 

 

IV If the bond sells at a discount then capital gains yield is positive

 

 

 

Group of answer choices

 

 

 

I, III, and IV

 

 

 

I, II and III

 

 

 

I, II, III, and IV

 

 

 

II, III and IV