Question
A 10-year bond with a 7% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? The bond is
A 10-year bond with a 7% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT?
| The bond is selling at its par value. | ||
| The bond is selling at a premium. | ||
| If the yield to maturity remains constant, the bond's price one year from now will be lower than its current price. | ||
| If the yield to maturity remains constant, the bond's price one year from now will be higher than its current price. |
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International Management Managing Across Borders And Cultures
Authors: Helen Deresky
10th Global Edition
1292430362, 978-1292430362
