Answer :
When the market rate of interest is higher than a bond's coupon rate, the bond will sell at a discount: TRUE
What is the bond's coupon rate?
- The coupon rate of a bond is calculated by dividing the total of the security's coupon payments by the bond's par value.
- A bond with a face value of $1,000 that pays a $25 coupon semiannually, for example, has a coupon rate of 5%.
- The coupon rate is equivalent to the yield on a repaired security.
- The interest rate is the percentage charged by the lender to the borrower for the amount borrowed.
- The discount code rate is calculated using the face value of the bond in question.
- When the market interest rate is higher than the coupon rate on a bond, the bond will purchase at a discount.
Therefore, the statement "when the market rate of interest is higher than a bond's coupon rate, the bond will sell at a discount" is TRUE.
Know more about bond's coupon rate here:
https://brainly.com/question/27123871
#SPJ4