If the interest rate on a bond is 9% and the market interest rate is 8%, the bond will be issued at a price below the par value of the bond.

Name: If the interest rate on a bond is 9% and the market interest rate is 8%, the bond will be issued at a price below the par value of the bond.
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Question

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A bond with an interest rate higher than the market rate will be issued at a premium, meaning above its par value, because it offers a higher return than the current market rate.

If the Interest Rate on a Bond Is 9% and the Market