Which of the following statements is true?
A) When investors' required rate of return equals the bond's coupon rate,then the market value of the bond may be selling at face value.
B) When investors' required rate of return exceeds the bond's coupon rate,then the market value of the bond will be greater than face value.
C) When investors' required rate of return is less than the bond's coupon rate,then market value of the bond will be greater than face value.
D) When investors' required rate of return is less than the bond's coupon rate,then the market value of the bond will be less than face value.
Correct Answer:
Verified
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