1. Amy purchased a 15-year bond at par value when it was initially issued five years ago.Thebond has an annual coupon rate of 4.25%and a par value of $1000. The current market interest rate (yield to maturity) is 6%.At the current market interest rate, this bond will sell at _______.Assuming no change in market interest rates, the bond will present the Amy with capital ________ as it matures.
2. .
3. A.premium; gains
4. B.discount; gains
5. C.premium; losses
6. D.discount; losses