Question

Is it more common for bonds to be sold at a discount or a premium? Explain, why?

Answer 1

In a time of rising rates, bonds are bought at a discount to par for roughly the same reason.

Step-by-step explanation:

There will be a higher amount of bonds selling at a premium in the market during those times when interest rates are falling. This happens because investors are getting more income from them. In a time of rising rates, bonds are bought at a discount to par for roughly the same reason.