Required rate of return>Coupon rate, the bond will be valued at

Related MCQs

• Lara wants to buy a bond and hold it until it matures. Which of the following must occur if Lara is to realize a holding period return equal to the bond’s yield to maturity?
• A bond that makes no coupon payments (and thus is initially priced at a deep discount to par value) is called a_______ bond.
• The annual coupon of a bond divided by its face value is called the bond:
• The rate of return required by investors in the market for owning a bond is called the:
• If coupon rate is equal to going rate of interest then bond will be sold
• Which of the following would cause the required return on a bond to increase, everything else held equal?
• Which of the following would cause a bond’s required return to increase?
• Which of the following causes a lower required return on a bond?
• Which of the following causes a lower required return on a bond?
• This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue