If the required return on a bond does not change from one year to the next, then ____________ over the same period (Ignore changes in default risk).

Question

Quizplus · Accepted Answer

If the required return on a bond does not change, the price of a bond selling at par will remain unchanged because the bond's coupon rate is equal to the market interest rate, and there are no changes in default risk or market conditions to affect its price.

If the Required Return on a Bond Does Not Change