A 12-year bond pays an annual coupon, its YTM is 10%, and it currently trades at a discount. Which statement regarding the bond’s yield is true?
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The bond’s current yield is greater than 10%.
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If the yield to maturity remains at 10%, then the bond’s price will decline over the next year.
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The bond’s coupon rate is greater than 10%.
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If the yield to maturity remains at 10%, then the bond’s price will increase over the next year.