Question and answer
When the market interest rate is less than a bond's coupon rate, A. the bond is trading at a premium. B. investors can purchase the bond for a discount. C. the bond will mature at an earlier date. D. the bond's face value is greater than the principal.
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Asked 5/6/2012 9:29:31 PM
Updated 103 days ago|6/9/2021 7:52:03 AM
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User: When the market interest rate is less than a bond's coupon rate, A. the bond is trading at a premium. B. investors can purchase the bond for a discount. C. the bond will mature at an earlier date. D. the bond's face value is greater than the principal.

Weegy: I think the answer is: D. the bond's face value is greater than the principal. ". When the market interest rate is below the coupon rate, bonds sell for more than face value."



User: When the market interest rate is less than a bond's coupon rate, A. the bond is trading at a premium. B. investors can purchase the bond for a discount. C. the bond will mature at an earlier date. D. the bond's face value is greater than the principal.

Question
Asked 5/6/2012 9:29:31 PM
Updated 103 days ago|6/9/2021 7:52:03 AM
2 Answers/Comments
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When the market interest rate is less than a bond's coupon rate, the bond is trading at a premium.
Added 225 days ago|2/7/2021 4:16:31 PM
This answer has been confirmed as correct and helpful.
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When the market interest rate is less than a bond's coupon rate - the bond's face value is greater than the principal.
Added 103 days ago|6/9/2021 7:52:03 AM
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