Bonds issued by BB&C Communications that have a coupon rate of interest equal to 10 percent currently have a yield to maturity (YTM) equal to 8 percent. Based on this information, it is understood that BB&C's bonds must currently be selling at a premium in the financial markets.
Answer the following statement true (T) or false (F)
True
When the market yield is less than the coupon rate of interest, the bond sells for greater than its par value, or at a premium. See 6-5: Interest Rates and Bond Values
Business
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