For a bond of a given par value, the higher the investor's required rate of return is above the coupon rate, the

Name: For a bond of a given par value, the higher the investor's required rate of return is above the coupon rate, the
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Question

For a bond of a given par value, the higher the investor's required rate of return is above the coupon rate, the ​

Quizplus · Accepted Answer

When the required rate of return is above the coupon rate, the bond will sell at a discount because its fixed interest payments are less attractive compared to the prevailing market rates. This means investors will pay less than the par value for the bond.

For a Bond of a Given Par Value, the Higher