Johnson Products issued $1,000 face value 20-year bonds five years ago.These bonds are currently selling for $1,218.47.From this information we can conclude that the Johnson Products bonds have a yield-to-maturity greater than the coupon rate on these bonds.

Question

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When a bond sells for more than its face value (at a premium), it indicates that the yield-to-maturity is less than the coupon rate.

Johnson Products Issued $1,000 Face Value 20-Year Bonds Five Years