If market yields are 10% p.a. and an investor sells a bond with face value of $10,000 and a semi- annual coupon rate of $5000, the price received will equal the par value.

Name: If market yields are 10% p.a. and an investor sells a bond with face value of $10,000 and a semi- annual coupon rate of $5000, the price received will equal the par value.
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Question

Quizplus · Accepted Answer

The bond's price will be equal to its par value because the market yield is equal to the bond's yield.

If Market Yields Are 10% P