Which Statement Regarding Interest Rate Risk Is True

question 60

Multiple Choice

Which statement regarding interest rate risk is true?

• A)If the market interest rate for a bond is less than the bond's coupon rate, the bond will sell at a premium.
• B)If the market interest rate for a bond is greater than the bond's coupon rate, the bond will sell at a premium.
• C)If the market interest rate for a bond is less than the bond's coupon rate, the bond will sell at a discount.
• D)If the market interest rate for a bond is greater than the bond's coupon rate, the bond will sell at a discount.

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