An investor is considering buying one of two 10-year 1000

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An investor is considering buying one of two 10-year, $1,000 face value bonds: Bond A has a 7% annual coupon, while Bond B has a 9% annual coupon. Both bonds have a yield to maturity of 8%, which is expected to remain constant for the next 10 years. Which of the following statements is CORRECT?

a Bond B has a higher price than Bond A today, but one year from now the bonds will have the same price.

b One year from now, Bond A's price will be higher than it is today.

c Bond A's current yield is greater than 8%.

d Bond A has a higher price than Bond B today, but one year from now the bonds will have the same price.

e Both bonds have the same price today, and the price of each bond is expected to remain constant until the bonds mature

Reference no: EM13604539

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