When the market rate of interest is greater than the coupon rate,the bond will sell at a discount.

Name: When the market rate of interest is greater than the coupon rate,the bond will sell at a discount.
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Question

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When the market rate of interest is greater than the coupon rate, the bond is less attractive to investors as they can get a better return elsewhere. This leads to a decrease in demand and ultimately a lower price (discount) for the bond in order to make it more attractive to buyers.

When the Market Rate of Interest Is Greater Than the Coupon