When a bond is sold at a discount, the maturity value is less than the present value of the principal and interest payments, based on the market rate of interest on the date of issue. True / False.

given statement is False

Explanation:

solution

As given bond sold at the discount

maturity value less than present value

but maturity value can not be less than present value of principal and interest

because bond sold at the discount

if bond sold at the discount than maturity value will be greater than the resent value of future cash flow

so we can say that given statement is False