The market value of the bond is less than the present value


A bond will sell at a discount ( below par value) if The economy is booming Current market interest rates are moving in the same direction as bond values The market value of the bond is less than the present value of the discount rate of the bond Investors current required rate of return is above the coupon rate of the bond.

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Basic Statistics: The market value of the bond is less than the present value
Reference No:- TGS02593019

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