Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A)When investors' required rate of return equals the bond's coupon rate,then the market value of the bond may be selling at par value.
• B)When investors' required rate of return exceeds the bond's coupon rate,then the market value of the bond will be greater than par value.
• C)When investors' required rate of return is less than the bond's coupon rate,then market value of the bond will be greater than par value.
• D)When investors' required rate of return is less than the bond's coupon rate,then the market value of the bond will be less than par value.