Question: John has just purchased a 5 . 6 8 % 5 - year bond trading at 9 7 . 2 5 . Identify the correct

John has just purchased a 5.68%5-year bond trading at 97.25. Identify the correct statement concerning market interest rates.
The bond is trading at a discount as current market rates are lower than the coupon rate
The bond is trading at a discount as current market rates are higher than the coupon rate
The bond is trading at a premium as current market rates have fallen below the coupon rate
The bond is trading at par as current market rates are around 5.68%
John has just purchased a 5 . 6 8 % 5 - year bond

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