If A Bond Sold At 97, The Market Rate Was:

(Correct Answer Below)

If A Bond Sold At 97, The Market Rate Was:

A. equal to the stated rate. B. less than the stated rate. C. greater than the stated rate. D. equal to the coupon rate.
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C. greater than the stated rate. If a bond was sold at 97, it sold at a discount (97% of face value), which occurs when the market rate is greater than the stated rate.

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