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  3. Study Set
    Principles of Managerial Finance
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    Exam 6: Interest Rates and Bond Valuation
  5. Question
    Whenever a Bond's Required Return Is Different from Its Coupon
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Whenever a Bond's Required Return Is Different from Its Coupon

Question 216

Question 216

True/False

Whenever a bond's required return is different from its coupon interest rate, the passage of time will affect the bond's value, even if the required return remains constant until maturity.

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