Question: A $ 1 , 0 0 0 par value corporate bond that pays $ 6 0 annually in interest was issued last year. If the

A $1,000 par value corporate bond that pays $60 annually in interest was issued last year. If the current price of the bond is $887.96 which one of the following
statements is correct?
Multiple Choice
The bond is selling at par value.
The current yield exceeds the coupon rate.
The coupon rate has increased to 9 percent.
The current yield exceeds the yield to maturity.
The bond is currently selling at a premium.
A $1,000 par value corporate bond that pays $60 annually in

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