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If market interest rate rises above coupon rate then bond will...

This question belongs to Commerce Financial Management
Financial Management
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If market interest rate rises above coupon rate then bond will be sold

Answer & Solution
Correct Answer: Option 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.
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