You are given the following information about a coupon bond: Yearly coupon payment: $100 • Face value of the bond: $1000 • Yield to maturity: 12% This would mean that: Select one: O A. Price of the bond is indeterminate. O B. Price of the bond is equal to its face value. OC. Price of the bond is greater than its face value. O D. Price of the bond is less than its face value.

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.