16. XYZ Corporation issued a 10-year bond on 9/1/2005 which pays semi-annual coupons, has a $1,000 par value, and a coupon rate of 7%. Today, the bond has a current yield of 7.25%. What can we say about this bond today?

A.The bond is selling at a premium to par value

B.The bond is selling at a discount to par value

C.The bond is selling at par value

D.We cannot say any of the above from the given information