If the required rate of return on a bond (rd) is greater than its coupon interest rate and will remain above that rate, then the market value of the bond will always be below its par value until the bond matures, at which time its market value will equal its par value.
a. True
b. False
Answers: 2
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If the required rate of return on a bond (rd) is greater than its coupon interest rate and will rema...
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