if-the-market-interest-rate-is-higher-than-the-stated-interest-rate-of-a-bond-wh

Question

If the market interest rate is higher than the stated interest rate of a bond, what is the likely impact on the bond's price?

Accepted Answer

The bond will be sold at a discount.

Answer

The bond will be sold at face value.

Answer

The bond's price will remain unchanged.

Answer

The bond will be sold at a premium.