Gabrielle Daniels and Edin Roth, CFA candidates, are discussing the relationship between a bond’s coupon rate and the required market yield. Looking through the local newspaper, they see a new-issue, 10-year, $1000 face value 8.00 percent semi-annual coupon bond priced at $950. Daniels makes the following statements. Which statement does Roth tell her is CORRECT ()
A. The current market required rate is less than the coupon rate.
B. The bond is selling at a premium.
C. The bond is selling at a discount.