1. A bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT? a. The bond has a current yield greater than 8%. b. The bond sells at a price below par. c. If the yield to maturity remains constant, the price of the bond will decline over time. d. The bond sells at a discount. 2. Daisy Companys bonds mature in 10 years, have a par value of $1,000 and an annual coupon payment of $80. The market interest rate for the bonds is 9%. What is the price of these bonds? Show details. 3. You are considering to buy the bond today at a price of $1150. It is callable in 5 years at a price of $1040. What yield are you more likely to get: YTM or YTC? Coupon rate is 8% per year. The bond matures in 12 years. Face par value is 1,000.