Any regular coupon bond of any maturity will sell for its face value if the coupon rate is the same as the market rate of interest.

Name: Any regular coupon bond of any maturity will sell for its face value if the coupon rate is the same as the market rate of interest.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

When the coupon rate on a bond equals the market interest rate, the bond will sell at its face value because the present value of its cash flows (interest payments and principal repayment) equals its nominal value.

Any Regular Coupon Bond of Any Maturity Will Sell for Its