If a bond's par value is greater than its market price,which of the following can we reasonably state about the general direction of interest rates in the recent past?

Question

Quizplus · Accepted Answer

When a bond's market price is below its par value, it typically indicates that interest rates have risen since the bond was issued. Higher interest rates in the market make the fixed payments of the existing bond less attractive, causing its price to drop below par.

If a Bond's Par Value Is Greater Than Its Market