Principle of Finance

A 12-year bond has an annual coupon rate of 9%. The par value of the bond is $1,000 and the bond has a yield to maturity of 7%. Which of the following statements is correct? If the market interest rate declines, the price of the bond will also decline. The bond is currently selling at a price below its par value. The bond is currently selling at a price above its par value. The bond is currently selling at its par value. The preemptive right is important to shareholders because it allows managers to buy additional shares below the current market price will result in higher dividends per share is included in every corporate charter protects the current shareholders against a dilution of their ownership interests