When the market interest rate exceeds the coupon rate,bonds sell for less than face value.

Name: When the market interest rate exceeds the coupon rate,bonds sell for less than face value.
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Question

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When the market interest rate is higher than the coupon rate, the bond will be less attractive to investors because they can earn a higher rate of return elsewhere. This will cause the bond to sell for a discount (less than face value) in order to make up for the lower coupon rate.

When the Market Interest Rate Exceeds the Coupon Rate,bonds Sell