In estimating the market value of a bond, the coupon rate should be used as the discount rate.

Name: In estimating the market value of a bond, the coupon rate should be used as the discount rate.
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Quizplus · Accepted Answer

The coupon rate is the interest rate that the bond pays annually, so it is not an appropriate discount rate for estimating the market value of a bond. Instead, the current market interest rates or the yield-to-maturity should be used as discount rates to estimate the bond's market value.

In Estimating the Market Value of a Bond, the Coupon