QUESTIONS 97 THROUGH 108 RELATE TO FIXED INCOME INVESTMENTS.

99. A bond is trading at $102.50. It pays 8% coupon annually. The par value of bond is $100. Which of the following statements is least likely to be true for the bond? A. the bond is yielding 6.5% B. the bond’s price next year will be $103.2 if all other things like yield and other risks, remain the same C. the bond has both reinvestment risk and interest rate risk