A 10-year bond with a 9% annual coupon has a yield to maturity of 8%

Accounting Nov 30, 2020

A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? a. The bond is selling at a discount b. If the yield to maturity remains constant, the band's price one year from now will be lower than its current price c. The bond is selling below its par value. d. It the yield to maturity remains constant, the band's price one year from now will be higher than its current price. . The band's current yield is greater than o 0 0 0000

Expert Solution

Ans b. If the yield to maturity remains constant, the bond's price one year from now will be lower than its current price.

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