If the Required Return Is Greater Than the Coupon Rate

question 175

Multiple Choice

If the required return is greater than the coupon rate, a bond will sell at ________.

• A) par
• B) a discount
• C) a premium
• D) book value

---

Definitions:

Balanced Equation

A chemical equation where the number of atoms for each element, and the total charge, are the same on both the reactants and products sides.

Fe2O3

Iron(III) oxide, a reddish-brown solid also known as rust, used in various applications such as painting and in the synthesis of iron.

Balanced Equation

A chemical equation where the number of atoms for each element, and thus the total charge, is the same on both the reactants' and the products' sides.

CH4O

CH4O represents the chemical formula for methanol, a simple alcohol used as a solvent, fuel, and antifreeze.