Cassel Corp.bonds pay an annual coupon rate of 10%.If investors' required rate of return is now 8% on these bonds, they will be priced at [blank].

Question

Quizplus · Accepted Answer

When the coupon rate of a bond is higher than the required rate of return, the bond is priced at a premium to par value. In this case, the coupon rate (10%) is higher than the required rate of return (8%), indicating that investors are willing to pay more than par value for these bonds.