When the required return is constant and equal to the coupon rate, the price of a bond as it approaches its maturity date will ________.

Question

Quizplus · Accepted Answer

When the required return is equal to the coupon rate and remains constant, the bond will trade at par value. This means that the price of the bond will not change as it approaches its maturity date. Therefore, option A is the correct answer.

When the Required Return Is Constant and Equal to the Coupon