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Consider a 10-year, $1,000 par value bond that pays annual coupons. Coupon rate of the bond...

Consider a 10-year, $1,000 par value bond that pays annual coupons. Coupon rate of the bond is 9%. If the current price of this bond is $900, we can infer that the yield-to-maturity (YTM) of this bond is _________.

  • A. less than 9%
  • B. equal to 9%
  • C. Not enough information
  • D. greater than 9%
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