Question: A bond has a $1,000 par value, makes annual coupon payments of $100, has 5 years to maturity, and cannot be called.The bond should sell

A bond has a $1,000 par value, makes annual coupon payments of $100, has 5 years to maturity, and cannot be called.The bond should sell at apremiumif the yield to maturity is below 10% and at adiscountif the required yield to maturity is greater than 10%.

False

True

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