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A 20-year bond with a 7% annual coupon has a yield to maturity of 9%. Which of the following statements is CORRECT? A. The bonds

A 20-year bond with a 7% annual coupon has a yield to maturity of 9%. Which of the following statements is CORRECT?

A. The bonds current yield is greater than 9%.

B.The bond is selling above its par value.

C. If the yield to maturity remains constant, the bonds price one year from now will be higher than its current price.

D. The bond is selling at a premium.

E. If the yield to maturity remains constant, the bonds price one year from now will be lower than its current price.

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