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A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT? a. The bond’s yield to maturity is above 9%. b. If the bond’s yield to maturity declines, the bond will sell at a discount. c. The bond’s current yield is above 9%. d. The bond’s expected capital gains yield is zero e. The bond’s current yield is less than its expected capital gains yield.

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