When the coupon rate of a bond is above the current market interest rates, a bond...

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Question

Finance

When the coupon rate of a bond is above the current marketinterest rates, a bond will sell at:
A. discount.
B. its original value.
C. premium.
D. face value.

Answer & Explanation Solved by verified expert

4.5 Ratings (827 Votes)

The right answer choice is C Premium If the coupon rate of a bond is above the current market interest rates a bond will sell at Premium When pricing bonds there is an inverse relationship between the Market price See Answer

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When the coupon rate of a bond is above the current market interest rates, a bond...

60.1K

Verified Solution

Question

Finance

When the coupon rate of a bond is above the current marketinterest rates, a bond will sell at:
A. discount.
B. its original value.
C. premium.
D. face value.

Answer & Explanation Solved by verified expert

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When the coupon rate of a bond is above the current market interest rates, a bond...

60.1K

Verified Solution

Question

Finance

When the coupon rate of a bond is above the current marketinterest rates, a bond will sell at:A. discount.B. its original value.C. premium.D. face value.

Answer & Explanation Solved by verified expert

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Transcribed Image Text

Other questions asked by students

When the coupon rate of a bond is above the current marketinterest rates, a bond will sell at:
A. discount.
B. its original value.
C. premium.
D. face value.