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30. A 12 -year bond has an annual coupon rate of 9%. The bond has a yield to maturity of 7%. Which of the following

30. A 12 -year bond has an annual coupon rate of 9%. The bond has a yield to maturity of 7%. Which of the following statements is CORECT?

A. If the market interest rates decline, the price of the bond will also decline.

B. The bond is currently selling at a price below its par value.

D. The bond should currently be selling at its par value.

E. If market interest rates remain unchanged, the bonds price exactly one year from now will be higher than it is today.

All these options are INCORRECT, can you please explain why these are not correct for each option. Thank you!

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