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If the Required Return Is Less Than the Coupon Rate

question 125

Multiple Choice

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


Definitions:

Semilunar

Shaped like a half-moon or crescent; often used to describe certain valves or cartilages in the human body that have a crescent shape.

Half

Refers to one of two equal parts into which something is or can be divided.

Centi-

A prefix denoting a factor of one hundredth (1/100) in the metric system.

One Hundredth

A fractional unit that is one part of a hundred, commonly expressed as 1/100.

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