Answered

Discover new information and insights with the help of IDNLearn.com. Receive prompt and accurate responses to your questions from our community of knowledgeable professionals ready to assist you at any time.

If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is

Select one:
a. below the principal value of the bond.
b. equal to the principal value of the bond.
c. Either A or B may be true.
d. above the principal value of the bond.

Sagot :

Okpalawalter8idn

If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is equal to the principal value of the bond. Option B. This is further explained below.

What is a bond?

Generally, a Bond is simply defined as fixed-income investments such as bonds that reflect a loan from an investor to a borrower, often a corporation or the government.

In conclusion, In this case, the bond's market value will be equal to the principal value of the bond. if the bond's effective yearly yield is equal to the bond's coupon rate

Read more about bondʹs

https://brainly.com/question/17405470

#SPJ1

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Your questions deserve accurate answers. Thank you for visiting IDNLearn.com, and see you again for more solutions.