Question: ts Score / 4 pler MC , Section . 0 4 , Problem 0 3 5 A 1 0 year bond with a 9 %

Score

/ 4

pler MC

,

Section

. 04,

Problem

035

10

year bond with a

9 %

annual coupon has a yield to maturity of

8 % .

Which of the following statements is CORRECT?

the yield to maturity remains constant, the bond's price one year from now will be lower than its current price. he bond is selling below its par value.

the yield to maturity remains constant, the bond's price one year from now will be higher than its current price. he bond's current yield is greater than

9 % .

he bond is selling at a discount.

ts Score / 4 pler MC , Section . 0 4 , Problem 0

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