When the market rate of interest is less than the contract rate for a bond,the bond will sell for a discount.

Name: When the market rate of interest is less than the contract rate for a bond,the bond will sell for a discount.
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When the market rate of interest is less than the contract rate for a bond, the bond will sell at a premium, not a discount, because it offers a higher return than the current market rate.

When the Market Rate of Interest Is Less Than the Contract