When the required return is constant and equal to the coupon rate, the price of a bond as itapproaches its maturity date will

Name: When the required return is constant and equal to the coupon rate, the price of a bond as itapproaches its maturity date will
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

When the required return is constant and equal to the coupon rate, the bond will be priced at par value throughout its life. Therefore, the price of the bond will remain constant as it approaches its maturity date.

When the Required Return Is Constant and Equal to the Coupon