Question
Although coupon paying bonds are generally issued (sold) with a market price equal to the bond's face (par) value, a bond's yield-to-maturity (required return) changes
Although coupon paying bonds are generally issued (sold) with a market price equal to the bond's face (par) value, a bond's yield-to-maturity (required return) changes with changes in general interest rates, a bond's perceived default risk, and changes in a bond's remaining time to maturity with the simple passage of time. Accordingly, match the relationship of a bond's yield-to-maturity (i) and coupon rate (CR) with the relationship of its its market price (P) and face value (F).
1. I=CR
2. I 3. I>Cr A: P=F B: P>F C: P Match which one goes with which.
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