Question: Bond A has a 1 0 % annual coupon, while bond B has a 7 % annual coupon. Both bonds have the same maturity, a

Bond A has a 10% annual coupon, while bond B has a 7% annual coupon. Both bonds have the same maturity, a face value of 1,000 and an 8% yield to maturity. Which of the following statements is correct?
A. bond a trades at a discount, whereas bond b trades at a premuium
b. if the yield to maturity on each bond increases to 9%, the price of both bonds will decrese.
c. if the yield to maturity on each bond increases to 9%, the price of both bonds will increase.

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