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A $1,000 face value corporate bond that pays $60 annually in interest was issued at par last year. Which one of these would apply to
A $1,000 face value corporate bond that pays $60 annually in interest was issued at par last year. Which one of these would apply to this bond today if the current price of the bond has fallen to $960?
A) The bond is currently selling at a premium.
B) The current yield exceeds the coupon rate.
C) The bond is selling at par value.
D) The current yield exceeds the yield to maturity.
E) The coupon rate has increased to 6.25 percent
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