When a company issues bonds, it tries to set the coupon rate on the bond slightly higher than the market rate so that the bond can be issued at a premium and they will receive more money.

When a company issues bonds, it tries to set the coupon rate on the bond slightly higher than the market rate so that the bond can be issued at a premium and they will receive more money.



Answer: False - Companies try to select a coupon rate that will approximate the market rate that is expected to be in effect on the date of issuance/


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