A bond will sell at a discount if its required return or discount rate is greater than its coupon rate.

Name: A bond will sell at a discount if its required return or discount rate is greater than its coupon rate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. When the required return or discount rate is greater than the coupon rate, investors are less willing to purchase the bond at face value, causing the bond to sell at a discount to compensate for the lower return.

A Bond Will Sell at a Discount If Its Required