When a bond is sold at a discount, the person buying the bond receives less interest than if the bond had been purchased at face value.

Question

Quizplus · Accepted Answer

When a bond is sold at a discount, the buyer pays less than the face value of the bond, but still receives the same nominal interest payments, which effectively increases the yield or interest rate received compared to purchasing the bond at face value.

When a Bond Is Sold at a Discount, the Person