Why does a bond sell at a discount when the coupon rate is lower than the required

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Why does a bond sell at a discount when the coupon rate is lower than the required rate of return and vice versa?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:01 AM

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Why does a bond sell at a discount when the coupon rate is lower than the required

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When a bonds coupon rate is lower than the required rate of return yield it means that the bonds fix...View the full answer

Foundations Of Finance

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