If a bond is issued at 98,the coupon rate was:

A) higher than the market rate of interest.
B) lower than the market rate of interest.
C) equal to the market rate of interest.
D) not related to the market rate of interest.

Market Rate

The current price at which an asset or service can be bought or sold in a particular market.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of its face value.

Issued At 98

A term indicating that a bond or other security was issued at a price below its par or face value, in this case, at 98% of the face value.