Suppose you have just bought a 15-year, 8% semiannual coupon bond. Your purchasing price of the bond implies that the current YTM is 6%. Which of the followings is true?

Question 5 options:

Your purchasing price should have been lower than the par value.

The cash flows associated with the bond are an annuity for the 15 year period and a lump sum at the end.

You will receive a $30 coupon payment every six month.

You would earn 8% rate of return if you hold this bond until the maturity.