If the market rate of interest on the day that bonds are issued is lower than the face rate of interest,the bonds will sell at a discount.

Name: If the market rate of interest on the day that bonds are issued is lower than the face rate of interest,the bonds will sell at a discount.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

When the market rate of interest is lower than the face rate of interest, bonds will sell at a premium, not a discount, because they offer a higher return than the current market rate.

If the Market Rate of Interest on the Day That