When the market interest rate is equal to the face interest rate on bonds,the present value of the bonds will be less than the bond's face value at the date of sale of the bonds.

Question

Quizplus · Accepted Answer

When the market interest rate is equal to the face interest rate on bonds, the present value of the bonds will be equal to the bond's face value at the date of sale of the bonds.

When the Market Interest Rate Is Equal to the Face