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

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Finance

When the coupon rate of a bond is below 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 (914 Votes)
The right answer choice is A Discount If the coupon rate of a bond is below the current market interest rates a bond will sell at Discount The Market Price of the Bond is the Present Value    See Answer
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Transcribed Image Text

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

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