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At the Time a Bond Is Issued, the Coupon Rate

Question 100

Multiple Choice

At the time a bond is issued, the coupon rate on the bond is set at a level that will cause:


A) the coupon rate to be equal to the yield to call on the bond.
B) the market interest rate to be greater than the coupon rate of the bond.
C) the yield to maturity to be less than the market yield on the bond.
D) the issuing price to be equal the face (par) value of the bond.
E) the market value to be greater than the maturity value of the bond.

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