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Suppose you have just bought a 1 0 - year, 6 % semiannual coupon bond with $ 1 , 0 0 0 par value. Your

Suppose you have just bought a 10-year, 6% semiannual coupon bond with $1,000 par value. Your purchasing price of the bond implies that the current YTM is 7%. Select all that are true.
Question 7 options:
The cash flows associated with the bond are an ordinary annuity for the 10 year period with a $1,000 lump sum at the maturity.
You would earn 6% rate of return if you hold this bond until the maturity.
The coupon rate will gradually increase till it becomes the same as the YTM.
Your purchasing price would have been lower than the par value.
You will receive a $30 coupon payment every six month.

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