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If a Debt Security's Coupon Rate Is Below the Prevailing

Question 39

Multiple Choice

If a debt security's coupon rate is below the prevailing market interest rate on comparable securities, that security will sell at a price:


A) Above its par value
B) At a discount from par
C) At a premium above par
D) That is indeterminate without more information about the security
E) None of the above

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