A bond will sell at a discount (below par value)if

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A bond will sell at a discount when the investor's current required rate of return is higher than the bond's coupon rate. This is because the bond offers a lower rate of return than what the investor wants, so they will only be willing to purchase the bond at a discounted price. The other choices are not necessarily true - the market value of the bond can be above the present value of the discount rate and interest rates and bond values can move in different directions. The state of the economy also does not necessarily impact whether a bond sells at a discount or not.

A Bond Will Sell at a Discount (Below Par Value)if