Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that matures in three years, has a coupon rate of 10 percent, and a face value of $1,000 ...

If the interest rate in the market were less than 10 percent the present va ...

Under what circumstances might you be willing to pay more than $1,000 for a coupon bond that

Question:

Under what circumstances might you be willing to pay more than $1,000 for a bond that matures in three years, has a rate of 10 percent, and a of $1,000?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...