The answer to this question is that the price of the bond will be equal to the face value. Bonds are type of investments in which the investor can receive money on the investment with a fixed interest. Bonds are also known as fixed income securities. This type of investment is less risky because the insurer will return the face value of the investment and interest from the investment is in a fixed rate.
If a corporate bond is issued with a coupon rate that varies directly with the required return, the price of the bond will