Sarah owns a bond with a four percent coupon and a six percent yield to maturity. This bond has six years to maturity and pays interest semi-annually. Which one of the following is correct?
A. The bond is selling at a discount.
B. The amount of each interest payment is $40.
C. The current price of the bond will be greater than the par value.
D. The present value is assumed to be $1,000.
