If a security's coupon rate is less than the prevailing market rate of interest it will sell at a discount from par.

Name: If a security's coupon rate is less than the prevailing market rate of interest it will sell at a discount from par.
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When a security's coupon rate is lower than the current market interest rate, investors will be less willing to pay the par value for it, leading it to sell at a discount to compensate for the lower returns.

If a Security's Coupon Rate Is Less Than the Prevailing