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The coupon rate or required return of bonds is equal tothe

1. The coupon rate or required return of bonds is equal tothe stated rate on the bond’s contract.

True

False

2. Which of the following is a result of setting the coupon rate on a bond immediately before it is issued?

a. ?The coupon rate is equal to the yield to maturity on the bond.

b. ?The market interest rate is equal to the coupon rate of the bond.

c. ?The yield to maturity is equal to the market yield on the bond.

d. ?The issuing price equals the face (par) value of the bond.

e. ?The market value is equal to the maturity value of the bond.

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