Question
When are the coupon rate of a bond and the market rate ofinterest most likely to be the same? - When the bond matures. -
When are the coupon rate of a bond and the market rate ofinterest most likely to be the same?
- When the bond matures.
- When the bond is issued.
- The coupon rate changes over the life of a bond to keep it inline with the market rate of interest.
- Never because corporations issuing bonds must always give apremium in coupon rates over the market rate of interest.
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
7th edition
978-0133856507, 013385650X, 133856437, 978-0133856439
