If the required return on a bond differs from its coupon interest rate, describe the behavior of the bond value over time as the bond moves toward maturity ...

If the required return on a bond is ...

If the required return on a bond differs from its coupon interest rate, describe the behavior of

Question:

If the required return on a bond differs from its interest rate, describe the behavior of the bond value over time as the bond moves toward maturity.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...