Final answer:
A par value bond has a market price equal to its face value at issuance. Other relationships, like coupon rate versus yield-to-maturity or market price compared to call price, can vary depending on the prevailing market interest rates and are not fixed attributes of a bond.
Step-by-step explanation:
The relationships that apply to a par value bond include considerations such as the coupon rate, yield-to-maturity, current yield, call price, and face or market value. When a bond is issued at par value, the market price is equal to its face value.
As interest rates fluctuate, the market price of a bond will diverge from its face value, leading to situations where the coupon rate can be less than the yield-to-maturity, the current yield might not equal the yield-to-maturity, and the market price can be different from the call price.
For instance, if market interest rates rise above the bond's coupon rate, the bond's market price falls below its face value. If market rates fall below the bond's coupon rate, the bond's market price rises above its face value.
The statement IV (market price = face value) directly applies to a par value bond. Options I (coupon rate < yield-to-maturity), II (current yield = yield-to-maturity), and III (market price = call price) depend on market conditions and can vary during the life of the bond.