Which one of the following statements is correct concerning discount bonds?

Question

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Discount bonds are issued at a price lower than their face value and do not have a coupon. The yield to maturity (YTM) is the total return expected on the bond if held until maturity and takes into account the discount from the face value. The current yield is the annual coupon payment divided by the market price, and for discount bonds, it will be lower than the YTM. Therefore, statement A is correct. Statement B is incorrect because discount bonds do not have a redemption value higher than face value. Statement C is incorrect because discount bonds do not have a coupon rate. Statement D is incorrect because the dirty price includes accrued interest, and for discount bonds, the dirty price will be lower than the clean price. Statement E is incorrect because some bonds with coupons can sell at a discount if their market interest rate is higher than their coupon rate.

Which One of the Following Statements Is Correct Concerning Discount