Please explain with details also explain wrong options  A Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT? a. The bond’s required rate of return is less than 7.5%.   b. The bond has a current yield greater than 8%.   c. The bond sells at a price below par.   d. If the yield to maturity remains constant, the price of the bond will decline over time   e. The bond sells at a discount

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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H3. Please explain with details also explain wrong options 

A Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT?

a. The bond’s required rate of return is less than 7.5%.
  b. The bond has a current yield greater than 8%.
  c. The bond sells at a price below par.
  d.
If the yield to maturity remains constant, the price of the bond will decline over time
  e. The bond sells at a discount
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