Question: A 1 0 - year bond with a 9 % annual coupon has a yield to maturity of 8 % . Which of the following

10 -

year bond with a

9 %

annual coupon has a yield to maturity of

8 % .

Which of the following statements isCORRECT? The bond is selling at a discount. The bond is selling below its par value. If the yield to maturity remains constant, the bond's price one year from now will be higher than its current price. The bond's current yield is greater than

9 % .

If the yield to maturity remains constant, the bond's price one year from now will be lower than its current price.

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