Which of the statements best describes bond yields

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Problem 1: A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements best describes bond yields?

a. The bond's current yield is less than 8%.
b. If the yield to maturity remains at 8%, then the bond's price will decline over the next year.
c. The bond's coupon rate is less than 8%.
d. If the yield to maturity remains at 8%, then the bond's price will remain constant over the next year.

Reference no: EM132818166

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