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  3. 1. bonds issued by bb&c communications that ha

1. Bonds issued by BB&C Communications that have a coupon rate of interest equal to...

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Finance

1. Bonds issued by BB&C Communications that have a coupon rate of interest equal to 10 percent currently have a yield to maturity (YTM) equal to 8 percent. Based on this information, it is understood that BB&C's bonds must currently be selling at a premium in the financial markets.

TRUE OR FALSE??

2. Everything else equal, if the United States runs a large foreign trade deficit, the financing of the deficit will:

decrease tax revenue.

increase the money supply.

increase government subsidies.

decrease sales of Treasury securities.

increase interest rates.

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