When the required return equals the coupon interest rate, the bond's value will remain at par until it matures.

Question

Quizplus · Accepted Answer

When the required return equals the coupon interest rate, the bond's yield to maturity (YTM) will equal the coupon rate. This means that the bond is priced at par value, and its value will remain at par until it matures, as there is no gain or loss to be made by buying or selling the bond.

When the Required Return Equals the Coupon Interest Rate, the Bond's