If the market interest rate is 6%, a $10,000, 7%, 5-year bond, that pays interest semiannually would sell at an amount:
a. greater than face value.
b. less than face value.
c. less than the maturity value.
d. equal to face value.
If the coupon rate of the bond is greater than its yield to maturity or market interest rate, the bond would sell at an amount greater than face value.
