Respuesta :

jrod120304

Answer: it can be bought for more than $1,000 and is selling at a discount when it can be bought for less than $1,000

Explanation:

There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.

ogorwyne

It would be a good investment to sell bonds at a discount from par if the coupons rate happens to be lower than what is the rate of  interest in the market.

Due to the fact that what investors are interested in is higher profit, they would not want to pay much for bonds that have lower coupon rates.

The discount that is offered upfront is what is used to make up for this limited coupon rates.

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