When a bond is selling for less than its face value, it is said to be selling at a:
A)discount.
B)premium.
C)commission.
D)conservative value.
E)prospectus value.

Question

Quizplus · Accepted Answer

When a bond is selling for less than its face value, it means it is selling at a discount. This is because the investor is able to purchase the bond at a lower price than the amount they will receive when the bond reaches maturity.

When a Bond Is Selling for Less Than Its Face