When the stated interest rate for bonds is lower than the market rate, the bonds will be issued at a discount.

Name: When the stated interest rate for bonds is lower than the market rate, the bonds will be issued at a discount.
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When the stated interest rate is lower than the market rate, investors will not be willing to pay the full face value for the bonds, leading them to be issued at a discount to make them more attractive.

When the Stated Interest Rate for Bonds Is Lower Than