Which of the following statements is CORRECT?   a.  If a coupon bond is selling at par, its current yield equals its yield to maturity.   b.  If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.   c.  If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.   d.  If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium.   e.  If a coupon bond is selling at a premium, its current yield equals its yield to maturity.

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.