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

Bond A has a 9% annual coupon, while Bond B has a 7% annual coupon. Both bonds have the same maturity, a face value of $1,000, and an 6% yield to maturity. Which of the following statements is CORRECT?
Question 2 options:
a)
Both bonds trade at par value.
b)
Bond B trades at a discount, whereas Bond A trades at a premium.
c)
If the yield to maturity for both bonds immediately decreases to 6%, Bond A's bond will have a larger percentage increase in value.
d)
Bond A trades at a discount and Bond B trades at a discount too.
e)
Bond A trades at a premium and Bond B trades at a premium too.
f)
Bond A trades at a discount, whereas Bond B trades at a premium.
g)
If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today.

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