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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%.

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