If the Coupon Rate Equals the Required Rate of Return

question 75

Multiple Choice

If the coupon rate equals the required rate of return, the price of the bond

• A)should be above its par value.
• B)should be below its par value.
• C)should be equal to its par value.
• D)is negligible.

---

Definitions:

Title Bar

The section at the top of a window displaying the name of the program and, often, the document name or other information.

Default Font

The pre-set style and size of text adopted by a software application or document unless changed by the user.

Headline

A heading at the top of an article or page in a newspaper or magazine, or a main title in any form of media, designed to grab attention by summarizing the content that follows.

Left Margins

The space on the left side of a page in a document that defines the boundary for text and other content, impacting the document's layout.