Which of the following statements is correct?

A) Bond prices and interest rates are not related.
B) When a bond's yield equals the coupon rate, the bond sells at a premium.
C) When a bond's yield is greater than the coupon rate, the bond sells above par.
D) When a bond's yield is less than the coupon rate, the bond sells above par.

Bond Prices

The amount of money for which bonds are bought and sold in the market, influenced by factors such as interest rates, supply, and demand.

Interest Rates

The expense incurred by a borrower, quantified as a percentage of the principal, for accessing a lender's assets.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.