A bond that is selling for less than the final principal payment offered by the bond is said to be selling at a

Question

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A bond selling for less than the final principal payment offered by the bond is said to be selling at a discount. This is because the market value of the bond is less than its face value or par value, and investors can purchase the bond at a lower price than they would receive at maturity. A bond selling for less than the final principal payment is discounted, as the purchaser is receiving a discount on the bond's face value.

A Bond That Is Selling for Less Than the Final