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QUESTION 16 Which of the following statements is CORRECT? a. If interest rates increase, the price of a 10-year coupon bond will decline by a

QUESTION 16

Which of the following statements is CORRECT?

	a.	If interest rates increase, the price of a 10-year coupon bond will decline by a greater percentage than the price of a 10-year zero coupon bond.
	b.	If a coupon bond is selling at a discount, its price will continue to decline until it reaches its par value at maturity.
	c.	If a coupon bond is selling at a premium, its current yield equals its yield to maturity.
	d.	If a coupon bond is selling at par, its current yield equals its yield to maturity.
	e.	If a bond's yield to maturity exceeds its annual coupon, then the bond will trade at a premium.

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