Which of the following statements is/are true?
A. When the required rate of return is equal to nominal rate, the value of bond is equal to its par value.
B. If the required rate of return is greater than the nominal rate, the value of a bond is more than its par value.
C. When the required rate of return is less than nominal rate, the value of bond is less than its par value.
1
A and C are correct
2
Only B is correct
3
Only A is correct
4
Only A and B are correct