A 8-year bond pays an annual coupon its ytm is 7 and it


A 8-year bond pays an annual coupon, its YTM is 7%, and it currently trades at a premium. Which of the following statements is CORRECT?

The bond's current yield is less than 7%.

If the yield to maturity remains at 7%, then the bond's price will remain constant over the next year.

If the yield to maturity increases, then the bond's price will increase.

If the yield to maturity remains at 7%, then the bond's price will decline over the next year.

The bond's coupon rate is less than 7%.

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Financial Management: A 8-year bond pays an annual coupon its ytm is 7 and it
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