American_Bankers_Association
CTFA · Question #71
When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
The correct answer is A. A premium. See the full explanation below for the reasoning.
Investment Management
Question
When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
Options
- AA premium
- BA discount
- Ccannot be determined without more information
- DFace value
How the community answered
(37 responses)- A76% (28)
- B16% (6)
- C5% (2)
- D3% (1)
Topics
#bond premium#coupon rate#required return#fixed income pricing
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