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A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? a. the bond

A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT?

a. the bond is selling below its par value

b. the bond is selling at a discount

c. the bond will earn a rate of return greater than 8%

d. the bond is selling at a premium to par value

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