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When a bond's coupon rate exactly equals its yield to maturity, the bond trades:

AAt a loss now
BAt par value
CAt a discount
DAt a premium
Answer & Solution
Correct answer: B. At par value
1. Below-market coupons trade at a discount, above-market at a premium. 2. Here the coupon matches exactly what the market demands. 3. So the bond trades at par value. _Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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