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A 8-year bond pays an annual coupon, its YTM is 7%, and it currently trades at a premium. Which of the following statements is CORRECT?
A 8-year bond pays an annual coupon, its YTM is 7%, and it currently trades at a premium. Which of the following statements is CORRECT?
The bond's current yield is less than 7%. | ||
If the yield to maturity remains at 7%, then the bond's price will remain constant over the next year. | ||
If the yield to maturity increases, then the bond's price will increase. | ||
If the yield to maturity remains at 7%, then the bond's price will decline over the next year. | ||
The bond's coupon rate is less than 7%. |
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