Which statement is TRUE for a bond trading at par?

A bond trading at par means that its market price is equal to its face value. In this context, the statement that the basis and coupon will be identical is true. The coupon rate of a bond is the annual interest payment made to the bondholders relative to the bond's face value, while the basis refers to the yield or interest rate that investors can expect to receive from the bond. When a bond is trading at par, the yield (or basis) is equal to the coupon rate, which means that investors receive exactly what they expect from the bond based on its stated interest payments.

In cases where a bond is trading either at a premium or a discount, the yield would differ from the coupon rate, leading to a situation where basis and coupon are not equal. This further confirms that when a bond is trading at par, the coupon and the basis being identical is indeed a significant characteristic of that bond's pricing and yield environment.