When will a bond's value and par (or face) value be the same? a. The bond's value and par value are always the same. b. If the coupon rate is equal to the required rate of return. c. If the coupon rate is higher than the required rate of return d. If the coupon rate is less than the required rate of return. What is a bond's annual coupon divided by its market price called? a. coupon rate b. yield to maturity c. current yield d. expected capital gains yield Quirk Drugs sold an issue of 30-year $1,000 par value bonds to the public that carry a 10.8% coupon rate, payable demi-annually. It is now 10 years later and the current market rate of interest is 8.00%. If interest rates remain at 9.00% until Quirk's bonds mature, what will happen to the value of the bonds over time? O a. The bonds will sell at a premium and decline in value until maturity. b. The bonds will coll at a discount and rise in value until maturity c. The bonds will sell at a premium and is invalue until maturity, d. The bonds will sell at a discount and fall in value until maturity MAD Inc.'s bond rating is upgraded by Standard and Poor's from CCC to BBB. Which of the following would occur in light of this news? O a. There is no relationship between bond ratings and bond prices. b. MAD Inc.'s bond price would fall. OC MAD Inc.'s bond price would remain the same d. MAD Inc.'s bond price would increase