If the interest rate on bonds is the same as the current market rate, the bonds will sell for their face value.

Name: If the interest rate on bonds is the same as the current market rate, the bonds will sell for their face value.
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Question

Quizplus · Accepted Answer

When the interest rate on bonds is the same as the current market rate, it means that the yield to maturity (YTM) of the bond is equal to the market rate. This will make the bond's price equal to its face value. Therefore, the statement is true.

If the Interest Rate on Bonds Is the Same as the Current