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Each of the following is necessarily TRUE about a bond's yield-to-maturity (YTM) EXCEPT:
A
A bond that sells at a premium to par has a yield (YTM) that is less than its coupon rate
B
A bond that sells at a discount to par has a yield (YTM) that is greater than its coupon rate
C
The yield (YTM) of a zero-coupon bond equals the spot (zero) rate of the bond's maturity
D
If the same term structure of spot rates applies to two bonds with identical maturities, the bond with the higher yield (YTM) is a superior investment
