If a Bond's Required Return Always Equals Its Coupon Interest

question 110

True/False

If a bond's required return always equals its coupon interest rate, the bond's value will remain at par until it matures.

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Definitions:

Mechanism

The underlying process or system that enables something to function or produces a particular outcome.

Mediation

The process through which tools organize people’s activities and ways of relating to their environments.

Social Enhancement

The most basic social process of learning to use cultural resources, in which resources are used simply because others’ activities have made them available in the immediate environment.

Mitosis

The process of cell duplication and division that generates all of an individual’s cells except sperm and ova.