Consider the following statements:
1. Bond is a written contract between borrower and lender.
2. When a bond sells at face value then YTM > current yield > coupon yield
3. The valuation of a bond is the determination of the fair price of a bond.
4. if the market price of the bond is greater than its face value, the bond is sold at the discount.
The correct statements is/are:
1
(1) and (2)
2
(2) and (3)
3
(1) and (3)
4
(3) and (4)