Due to the mechanics of printing and issuing bonds, bond coupon rates do not always equal current market interest rates.

Question

Quizplus · Accepted Answer

Bond coupon rates are typically set at the time of issuance and do not change throughout the life of the bond, regardless of changes in current market interest rates. Therefore, the coupon rate may be higher or lower than current market rates at any given time.

Due to the Mechanics of Printing and Issuing Bonds, Bond