When the Market Rate of Return Exceeds the Coupon Rate

question 38

Multiple Choice

When the market rate of return exceeds the coupon rate, a bond will sell at

• A) a premium.
• B) a discount.
• C) face value.
• D) par.

---

Definitions:

Finishing

The process of applying final surface treatments to materials or components to achieve desired aesthetic or functional characteristics.

Machining Symbol

A type of symbol used on engineering drawings to indicate the type of machining operation required, surface texture, or surface roughness on a part.

Leader

In drafting and design, a line that connects a note or symbol to a specific location, typically used for annotations.

Finished Surface

A surface that has undergone a final manufacturing process to meet specified criteria of texture, smoothness, or coating.