A 12-year bond has an annual coupon of 7%. The coupon rate will remain fixed until the bond matures. The bond currently has a yield to maturity of 9%. Which of the following statements is CORRECT? (Hint: find the bond price based on the current yield to maturity of 9%)

A.The bond should currently be selling at its par value (par bond).

B.The bond is currently selling at a price above its par value (premium bond).

C. If market interest rates remain unchanged, the bonds price will increase over time until it reaches $1000.

D. If market interest rates decline, the price of the bond will also decline.