When market interest rates are above the coupon rate on a bond, the bond would trade at a premium.

Name: When market interest rates are above the coupon rate on a bond, the bond would trade at a premium.
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When market interest rates are above the coupon rate on a bond, the bond typically trades at a discount because its fixed interest payments are less attractive compared to the new higher-yielding investments available in the market.

When Market Interest Rates Are Above the Coupon Rate on a Bond