Cabell Corp. bonds pay an annual coupon rate of 10. If investors' ...

[LCritchfi]

Cabell Corp. bonds pay an annual coupon rate of 10. If investors' required rate of return is now
  12 on these bonds, they will be priced at
 
  A) a premium to par value.
  B) par value.
  C) a discount to par value.
  D) Cannot be determined without knowing the number of years to maturity.

Question 2

Other things equal, individuals in high-income tax brackets should have a preference for firms that
  retain their earnings rather than pay dividends.
 
  Indicate whether the statement is true or false

[carlsona147]

Answer to Question 1

C

Answer to Question 2

TRUE