If a bond is issued at a discount, the bond coupon rate is? A. Equal to the mark

ID: 2825701 • Letter: I

Question

If a bond is issued at a discount, the bond coupon rate is?
A. Equal to the market rate interst B. Less than the market rate of interest C. GreAter than the market rate of interest If a bond is issued at a discount, the bond coupon rate is?
A. Equal to the market rate interst B. Less than the market rate of interest C. GreAter than the market rate of interest
A. Equal to the market rate interst B. Less than the market rate of interest C. GreAter than the market rate of interest A. Equal to the market rate interst B. Less than the market rate of interest C. GreAter than the market rate of interest

Explanation / Answer

B) less than the market rate of interest

bond trades at a discount when its coupon rate is lower than prevailing interest rates.

A bond trades at a premium when its coupon rate is higher than prevailing interest rates.

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If a bond is issued at a discount, the bond coupon rate is? A. Equal to the mark

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