A Bond Sells at a Discount When the:
Why a Bond Sells at a Discount. A bond sells at a discount when the. Pin On News If prevailing interest rates rise after a bond has been issued the bond at a lower coupon rate will not be worth as much as newly issued bonds with higher coupons. . The interest rate of this bond which is called the coupon is typically being paid semianually. All else constant a bond will sell at _____ when the coupon rate is _____ the yield to maturity. None of these is true. Less than the bonds coupon rate. Ch 11 Bonds and LTL 1. Bonds sell at a discount when the market rate of interest is. Its coupon rate is greater than its current yield and its current yield is greater than its yield to maturity b. A discount bond is a bond that was originally sold at less than its face value. To compare the two in the current market and to convert older bond prices to their value in the current market you can use a calculation called yi...