Nancy has money she has decided to invest in bonds. She calls her investment adviser who tells her she can buy a non-callable bond for $750. The bond has the following characteristics:

Face Value = $1000

Coupon Rate = 5% (annual payments)

Maturity = 10yrs

If Nancy's required return on bonds with the same risk profile as the one her investment adviser is offering her is 12%, Nancy should buy the bond.

True

False