Whenever a Bond whose coupon rate is equal to the YTM always trades at par value.
Whenever a Bond whose coupon rate is greater than YTM always trades at premium.
Whenever a Bond whose coupon rate is lower than YTM always trades at discount.
In the present case, coupon rate is 10% ($ 100 / $ 1,000) will be greater than 9% and the bond shall trade at a premium and if the interest rate of 11% will be greater than the coupon rate of 10%, hence the bond will trade at discount.
So, the given statement is a true statement.
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