Q19

A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT? O a) The bond's expected capital gains yield is zero. O b) The bond's current yield is above 9%. ( c) If the bond's yield to maturity declines, the bond will sell at a discount. O d) The bond's current yield is less than its expected capital gains yield. Oe) The bond's yield to maturity is above 9%