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  A 5-year corporate bond paying an annual coupon of 8% is sold at a price reflecting a yield-to-maturity of 6% per year. One year passes and the interest rates remain unchanged. If the term structure is flat and all other factors is constant,the bond';s price during this period will have:
  A.Increased.
  B.Decreased.
  C.Remained constant.
  D.Cannot be determined with the data given.
  Answer: B
  Explanation : Since, the bond is sold at a premium. As time passes, the bond price will move towards par. Hence the price will decrease.