A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par (S1,000). Which of the following statements is CORRECT? OA. The bond's expected capital gains yield is zero. O B. The bond's yield to maturity is above 9% . OC The bond's current yield is above 9% . O D. If the bond's yield to maturity declines, the bond will sell at a discount. The bond's current yield is less than its expected capital gains yield. QUESTION 24 A 10-year bond pays an annual coupon, its YTM is 8 % , and it currently trades at a premium. Which of the following statements is CORRECT? A. The bond's current yield is less than 8 % B. If the yield to maturity remains at 8 %, then the bond's price will decline over the next year. O C. The bond's coupon rate is less than 8 %. D. If the yield to maturity increases, then the bond's price will increase. E. If the yield to maturity remains at 8% , then the bond's price will remain constant over the next year QUESTION 25 Which of the following statements is CORRECT? Assume that two bonds have equal maturities and are of equal risk, but one bond sells at par while the other sells at a premium above par. The premium bond must have a lower O A. current yield and a higher capital gains yield than the par bond. OB. A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate. O C.Ifa bond sells at par, then its current yield will be less than its yield to maturity O D. If a bond sells for less than par, then its yield to maturity is less than its coupon rate. A discount bond's price declines each year until it matures, when its value equals its par value. O E