Which of the following will generally result in a higher price for a bond?
A) Higher coupon rate.
B) Longer maturity.
C) Shorter maturity.
D) Higher required rate of return.

Question

Quizplus · Accepted Answer

A higher coupon rate means the bond pays a higher annual interest percentage, which makes it more attractive to investors and therefore increases demand and price.

Note: B, C, and D are not necessarily indicative of a higher bond price as the relationship between bond price and these factors can vary.

Which of the Following Will Generally Result in a Higher