Answered

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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 :

okpalawalter8

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

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