A bond issued at a price below its maturity or par value is sold at a discount.

Name: A bond issued at a price below its maturity or par value is sold at a discount.
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Question

Quizplus · Accepted Answer

This is correct. When a bond is issued at a price below its maturity or par value, it is sold at a discount. This can happen when interest rates rise after the bond is issued, or when the credit rating of the issuer declines. A bond sold at a discount will eventually mature at its face value, providing a gain for the buyer.

A Bond Issued at a Price Below Its Maturity or Par