If a bond investor pays $1,030 for an annual coupon bond with a face value of $1,000, it follows that: Question 20 options:

If a bond investor pays $1,030 for an annual coupon bond with a face value of $1,000, it follows that:

Question 20 options:

1) the coupon rate is higher than the current market yield

2) the current market yield and coupon rate are equal

3) the current market yield is higher than the coupon rate

4) not enough information is given to compare the coupon rate and current market yield