Solstice Corporation issued a 5% bond four years ago at par value. The market interest rate on comparable bonds today is 4%. A) This bond sells at a premium and the coupon rate is lower than the yield. B) This bond sells at a premium and the coupon rate is higher than the yield. C) This bond sells at a discount and the coupon rate is higher than the yield. D) This bond sells at a discount and the coupon rate is lower than the yield.

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Solstice Corporation issued a 5% bond four years ago at par value. The market interest rate on comparable bonds today is 4%. A) This bond sells at a premium and the coupon rate is lower than the yield. B) This bond sells at a premium and the coupon rate is higher than the yield. C) This bond sells at a discount and the coupon rate is higher than the yield. D) This bond sells at a discount and the coupon rate is lower than the yield.

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