American_Bankers_Association
CTFA · Question #69
What's the value to you of a $1,000 face-value bond with an 8% coupon rate when your required rate of return is 15 percent?
The correct answer is B. Less than its face value. See the full explanation below for the reasoning.
Investment Management
Question
What's the value to you of a $1,000 face-value bond with an 8% coupon rate when your required rate of return is 15 percent?
Options
- AMore than its face value
- BLess than its face value
- C$1000
- DTrue
How the community answered
(17 responses)- A12% (2)
- B82% (14)
- D6% (1)
Topics
#bond valuation#coupon rate#required rate of return#bond pricing
Community Discussion
No community discussion yet for this question.