Which of the following statements are consistent with the figure above? This pattern of prices is consistent with a bond whose yield to maturity is below the bond's coupon rate. This bond pays a coupon of $8. This bond pays coupons on an annual basis. None of the other statements are correct.

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.