If an Investor Pays $1,025 for a Bond with a Face

Multiple Choice

If an investor pays $1,025 for a bond with a face value of $1,000, it follows that the current yield is __________ than the coupon rate, and the investor will realize a capital __________ if he holds the bond until maturity.

A) greater; gain
B) less; gain
C) greater; loss
D) less; loss