Because the bonds will have an interest rate that is lower than the market rate, the bond will need to sell at a discount so that the effective interest rate is equal to the higher market interest rate. The sales price is the value of the bond and the sales price will be less than the face amount of the bond.
Because the bonds will have an interest rate that is lower than the market rate, the bond will need to sell at a discount so that the effective interest rate is equal to the higher market interest rate. When they sell at a premium, the selling price is higher than the face amount.
The face value of the bonds will not change, no matter what the market rate of interest is or no matter what inflation is. The face value is set and determined and does not change.
Because the bonds will have an interest rate that is lower than the market rate, the bond will need to sell at a discount so that the effective interest rate is equal to the higher market interest rate.
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