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Bond X has a 7 percent coupon rate and a maturity of five years. On Monday, the prevailing market rate for similar bonds is

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Bond X has a 7 percent coupon rate and a maturity of five years. On Monday, the prevailing market rate for similar bonds is 7 percent. but on Tuesday, it declines to 6.8 percent. As of Tuesday, Bond X will become a premium bond and its price will decrease. Bond X will become a premium bond and its price will increase. Bond X will become a discount bond and its price will decrease. O Bond X will become a discount bond and its price will increase.

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