A N-Year Bond with Face Value F,has a Coupon Rate

question 10

Multiple Choice

A n-year bond with face value F,has a coupon rate equal to the yield rate,r = i.The bond is redeemable at C,where C < F.What can you say about the price,P,that an investor would pay for the bond?

• A)It is greater than C
• B)It is less than C
• C)It is equal to C
• D)It is equal to F

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