A bond with a 9% coupon and a 10% required return will sell at a premium to par.

Name: A bond with a 9% coupon and a 10% required return will sell at a premium to par.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A bond will sell at a discount to par if its coupon rate is less than its required return or yield to maturity. In this case, since the coupon rate (9%) is less than the required return (10%), the bond will sell at a discount, not a premium.

A Bond with a 9% Coupon and a 10% Required