Bonds issued by BB&C Communications that have a coupon rate of interest equal to 10.65 percent currently have a yield to maturity (YTM) equal to 15.25 percent. Based on this information, it is understood that BB&C's bonds must currently be selling at _____ in the financial markets.
A. the par value
B. a discount
C. a premium
D. the inflation adjusted interest rate
E. a floating interest rate
Answer: B
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