Medtronic plc (MDT) recently issued a 14-year, 8.87% monthly coupon bond selling for $1,768.54 can be called in 7 years for $1,392.85. In this case, MDT will raise money by selling new issuing bonds, and investors earn the bonds yield-to-call (YTC), which is lower than its yield-to-maturity (YTM).

Select one:

True

False