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When the coupon rate and the yield to maturity are identical, the bond sells:
AAt zero value
BAt its par value
CAt twice par value
DAt half par value
Answer & Solution
Correct answer: B. At its par value
1. Neither premium nor discount applies.
2. Such bonds are called par value bonds.
3. It sells at its par value.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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