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Assume that the par value of a bond is $1,000. Consider a bond where the coupon rate is 9% and the current yield is 10%.
Assume that the par value of a bond is $1,000. Consider a bond where the coupon rate is 9% and the current yield is 10%. Which of the following statements is true? A. The current yield was less than 9% when the bond was first issued. B. The current yield was greater than 9% when the bond was first issued. C. The market value of the bond is more than $1,000. D. The market value of the bond is less than $1,000.
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