A bond with a face value of $1,000 has annual coupon payments of $100 and was issued 10 years ago. The bond currently sells for $1,000 and has 8 years remaining to maturity. This bond’s ______________ must be 10%.

1. yield to maturity
2. market premium

III.  coupon rate

1. A) I only
2. B) I and II only
3. C) III only
4. D) I and III only
5. E) I, II and III