If a Bond Has a Market Value That Is Higher

question 87

True/False

If a bond has a market value that is higher than its par value,then the required return on the bond must be less than the bond's coupon rate.

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Definitions:

Posterior Tibial

Pertaining to the rear (posterior) tibial nerve or artery, which are located in the lower leg and supply regions of the foot.

Smooth Muscle Fibers

Specialized muscle tissues that contract involuntarily, found in the walls of internal organs such as the stomach, intestines, and blood vessels.

Elastic Tissue

A type of connective tissue that allows many tissues in the body to resume their shape after stretching or contracting.

Thinner Walls

Structures, particularly in the context of blood vessels or chambers of the heart, having less thickness, which can impact their function and efficiency.