If a corporation issues bonds that it cannot sell,this is an indication that
A)Expectations of future sales are low.
B)Dividends are too low.
C)The coupon rate is too low.
D)The opportunity cost of the bonds is too low.

Question

Quizplus · Accepted Answer

The coupon rate is the interest rate that the bond issuer will pay to the bondholders. If a corporation issues bonds that it cannot sell, it often indicates that the coupon rate is too low compared to the interest rates of other available investment opportunities, making the bonds less attractive to investors.

If a Corporation Issues Bonds That It Cannot Sell,this Is