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A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at a discount ($928). Which of the following statement

A 10-year corporate bond has an annual coupon payment of 5%. The bond is currently selling at a discount ($928). Which of the following statement is correct? Please explain.

The bonds yield to maturity is 5%.

The bonds current yield is 5%.

The bonds yield to maturity is higher than 5%.

The bonds capital gain yield is 5%.

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