Which of the following statements about bonds are true?
Select all that applies.
a. If the value of a bond B0 is less than its par value, the bond is selling at a premium.
b. The yield to maturity on a bond with a current price equal to its par value will always
equal the coupon interest rate.
c. Bonds on short maturities will have less interest rate risk than bonds with longer
maturities and equal features.
d. As market interest rates increase bond prices increase.
e. The longer the period until a bond matures, the less a change in market interest rates
will affect its market value.
f. The discount rate of a bond is synonymous with the bond’s required return.
