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anastassius [24]
4 years ago
5

If the required rate of return on a bond (rd) is greater than its coupon interest rate and will remain above that rate, then the

market value of the bond will always be below its par value until the bond matures, at which time its market value will equal its par value.
a. True
b. False
Business
1 answer:
LenKa [72]4 years ago
5 0

Answer:

True

Explanation:

until the bond matures the market value of the bond will always be below its par value. Especially if the required rate of return on a bond (rd) is greater than its coupon interest rate.

Hence the statement is very true.

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