A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT?
a. If the yield to maturity remains at 8%, then the bond’s price will decline over the next year.
b. The bond’s coupon rate is less than 8%.
c. The bond’s current yield is less than 8%.
d. If the yield to maturity increases, then the bond’s price will increase.
e. If the yield to maturity remains at 8%, then the bond’s price will remain constant over the next year.