A bond will trade at a discount if its coupon rate is less than its yield to maturity.

Name: A bond will trade at a discount if its coupon rate is less than its yield to maturity.
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When the coupon rate of a bond is less than its yield to maturity, it means that the bond is offering a lower interest rate than the prevailing market rate. Investors will, therefore, demand a discount on the bond's price to compensate for the lower return, leading to the bond trading at a discount.

A Bond Will Trade at a Discount If Its Coupon