Question: When pricing bonds, if a bond's coupon rate is less than the required rate of return, then: Select one: a. The bond sells at a

When pricing bonds, if a bond's coupon rate is less than the required rate of return, then:

Select one:

a. The bond sells at a premium if it has a long maturity, a discount if it has a short maturity.

b. The holder of the bond will realize a capital gain if the bond is held to maturity.

c. The bond sells at a discount if it has a long maturity, a premium if it has a short maturity.

d. The holder of the bond is assured of a profit regardless of when the bond is eventually sold.

e. The bond sells at par because the required rate of return is adjusted to reflect the discrepancy.

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