If a bond's required return always equals its coupon interest rate, the bond's value will remain at par until it matures.

Name: If a bond's required return always equals its coupon interest rate, the bond's value will remain at par until it matures.
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If a bond's required return is equal to its coupon interest rate, then the bond is said to be priced at par. In this scenario, the bond's value will remain at par until it matures and the principal is repaid.

If a Bond's Required Return Always Equals Its Coupon Interest