equal to return rate
seasoned price
below its par value
above its par value
✅ The correct answer is C.
If market interest rate rises above coupon rate then bond will be sold below its par value. Once a bond is issued the issuing corporation must pay to the bondholders the bond’s stated interest for the life of the bond.
If market interest rate rises above coupon rate then bond will be sold below its par value. Once a bond is issued the issuing corporation must pay to the bondholders the bond’s stated interest for the life of the bond.