Which of the following is TRUE about bonds? * a. If the bond price is greater than its par value, the bond is discounted. b. None of the choices. c. If the bond price is greater than its par value, the bond is traded at a premium. d. Coupon rates are always higher than the market rate.

Which of the following is TRUE about bonds? * a. If the bond price is greater than its par value, the bond is discounted. b. None of the choices. c. If the bond price is greater than its par value, the bond is traded at a premium. d. Coupon rates are always higher than the market rate.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter15: Monetary Policy

Section: Chapter Questions

Problem 2WNG

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Question

Which of the following is TRUE about bonds? *

a. If the bond price is greater than its par value, the bond is discounted.
b. None of the choices.
c. If the bond price is greater than its par value, the bond is traded at a premium.
d. Coupon rates are always higher than the market rate.

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