A bond with an 11 percent coupon and a 9 percent required return will sell at a premium to par.

Name: A bond with an 11 percent coupon and a 9 percent required return will sell at a premium to par.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A bond with a coupon rate higher than the required return is considered attractive to buyers, so it will sell at a premium to its par value. In this case, the 11 percent coupon rate is higher than the 9 percent required return, making the bond sell at a premium.

A Bond with an 11 Percent Coupon and a 9