Which statement regarding bond yields is true?
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The yield to maturity for a coupon bond that sells at a discount consists entirely of a negative capital gains yield; it has a zero current interest yield.
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The yield to maturity for a coupon bond that sells at a premium consists entirely of a positive capital gains yield; it has a zero current interest yield.
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The yield to maturity on a coupon bond that sells at its par value consists entirely of a current interest yield; it has a zero expected capital gains yield.
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Declining inflation makes the actual yield to maturity on a bond less than a quoted yield to maturity that is based on market prices.