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Basic Question 0 of 3

As the discount rate ______ relative to the stated coupon rate, the price of the bond ______ relative to the par value.

A. increases; increases
B. decreases; stays constant
C. decreases; increases

User Contributed Comments 2

User Comment
mrushdi that is a good one.
ChristinaJ yield and price of bond has an inverse relationship
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

identify the relationships among a bond's price, coupon rate, maturity, and yield-to-maturity

CFA® 2025 Level I Curriculum, Volume 4, Module 6.