If a $10,000 Bond,with a 12% Coupon Rate,is Trading at 100,what

Multiple Choice

If a $10,000 bond,with a 12% coupon rate,is trading at 100,what can be said about the current price and current yield of the bond?

A) $\begin{array}{ll}\underline{ \text { Current Price } }& \underline{ \text { Current Yield }}\\\$ 10,000 &{\text { Greater than } 12 \%} \\\end{array}$

B) $\begin{array}{lccc}\underline{ \text { Current Price } }& \underline{ \text { Current Yield }}\\\$ 10,000 & \text { Equal to } 12 \% \\\end{array}$

C) $\begin{array}{lccc}\underline{ \text { Current Price } }& \underline{ \text { Current Yield }}\\\$ 10,000 & \text { Less than } 12 \%\\\end{array}$

D) $\begin{array}{lccc}\underline{ \text { Current Price } } & \underline{ \text { Current Yield }}\\\$ 11,200 & \text { Equal to } 12 \% \\\end{array}$

E) $\begin{array}{lccc}\underline{ \text { Current Price } }&\underline{ \text { Current Yield }}\\\$ 11,200 & \text { Less than } 12 \%\\\end{array}$