A bond is currently selling for a price greater than face


A bond is currently selling for a price greater than face value. If the bond’s yield to maturity remains constant, which of the following statements is most correct:

a. The bond’s price will be higher next year

b. The bond’s price will be lower next year

c. This bond is a bad investment.

d. Both answers (a) and (c) are correct.

e. Both answers (b) and (c) are correct.

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Financial Management: A bond is currently selling for a price greater than face
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