Question: You purchased a 10-year bond at par value when it was originally issued. It has an annual coupon of 5 percent and matures five years

You purchased a 10-year bond at par value when it was originally issued. It has an annual coupon of 5 percent and matures five years from now. Coupons are paid semiannually. Which one of the following statements applies to this bond if the relevant market interest rate is now 4.7 percent?

A. You will realize a capital gain on the bond if you sell it today.

B. The bond is currently valued at one-half of its issue price.

C. The current yield is 5 percent.

D. The next interest payment will be $50.

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