A Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT?
a) The bond sells at a price below par.
b) The bond sells at a discount.
c) The bond has a current yield greater than 8%.
d) If the yield to maturity remains constant, the price of the bond will decline over time.
e) The bond’s required rate of return is less than 7.5%.