Answer:
E) Yield to maturity < Coupon rate
Explanation:
As we all know that:
Bond's Yield = Coupon Payments / Market Price
If the market price has exceeded from the par value then the yield of bond will eventually fall from the previous level. In other words, as market value of bond is directly proportional to the coupon payments so we can say that the coupon rate increases the value of the bond.
Hence
Coupon rate > Yield to maturity (If the market value is above par value)
If we change the sign, we have:
Yield to maturity < Coupon rate (Which is the option E)
