The required rate of return on a bond is:
Group of answer choices:
O the interest rate that equates the current market price of the bond with the present value of all future cash flows received.
O equivalent to the current yield for nonpar bonds.
O less than the E (r) for discount bonds and greater than the E (r) for premium bonds.
O inversely related to a bond's risk and coupon.
O None of these choices are correct.
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