Question: Bond A has a 7 % annual coupon, while Bond B has a 9 % annual coupon. Both bonds have the same maturity, a face

Bond A has a 7% annual coupon, while Bond B has a 9% 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 and Bond B trades at a discount too.
b) If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will thigher than it is today, but Bond B's price one year from now will be lower than it is today.
C) Bond B trades at a discount, whereas Bond A trades at a premium.
d) Bond A trades at a discount, whereas Bond B trades at a premium.
e) Both bonds trade at par value.
f) If the yield to maturity for both bonds immediately decreases to 6%, Bond A's bond will have a larger percentage increase in value.
g) Bond A trades at a premium and Bond B trades at a premium too.
 Bond A has a 7% annual coupon, while Bond B has

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