Question

g These bonds would sell at a discount when the: Multiple Choice bond stated interest rate is above the market rate of interest. bond stated interest rate is equal to the market rate of interest. bond stated interest rate is below the market rate of interest. bond pays interest only once a year.

Answer 1

bond stated interest rate is below the market rate of interest.

Step-by-step explanation:

A bond sells at a discount if its face value is below par. For example, if par value is $1000 and the price is $950, the bond is selling at a discount

A bond is selling at a discount if the bond stated interest rate is below the market rate of interest.

A bond is selling at a premium if its interest rate is above the market rate of interest.