💰 CPA Exam Prep

A bond sold at a discount means:

A The coupon rate equals the market rate
B The coupon rate is lower than the market interest rate
C The coupon rate is higher than the market rate
D The bond is worthless

✓ Correct Answer: Option B

Bonds sell at a discount when the coupon rate < market rate, as investors pay less to achieve the higher market return.

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