When the market rate of return exceeds the coupon rate

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Reference no: EM131526875

1. At the time you purchase a bond, you know the exact holding period return you will earn if

you resell the bond in exactly one year from the date of purchase.

the bond is called at any time prior to maturity.

the market rate of interest declines within the next year.

you hold the bond to maturity.

2. When the market rate of return exceeds the coupon rate, a bond will sell at

par.

face value.

a discount.

a premium.

Reference no: EM131526875

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