Which of the following statements regarding bond current yields is correct?
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If a bond is selling at a premium, then its current yield will decrease as the bond’s term to maturity changes.
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If a bond is selling at a discount, then its current yield will increase as the bond’s term to maturity changes.
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If a bond is selling at par, then its current yield will remain unchanged as the bond’s term to maturity changes.
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If a bond is selling at a discount, then its current yield will be less than its yield to maturity.