Consider a bond that has a $1000 face value, a 6.875% coupon rate, and pays interest semiannually. The bond has ten years remaining until maturity. The current price reflects an 8.125% annual return to investors. Which of the following statements concerning this bond is true?
A.	The bond will sell at a discount.
B.	The bond will sell for exactly par value.
C.	The bond will sell at a premium.
D.	None of the above are true.
Answer:A
Consider a bond that has a $1000 face value, a 6.875% coupon rate, and pays interest semiannually. The bond has ten years remaining until maturity. The current price reflects an 8.125% annual return to investors. Which of the following statements concerning this bond is true?
A.	The bond will sell at a discount. B.	The bond will sell for exactly par value. C.	The bond will sell at a premium. D.	None of the above are true.