If a bond's par value is greater than its market price,which of the following can we reasonably state about the general direction of interest rates in the recent past?

A) Interest rates have risen.
B) Interest rates have remained relatively stable.
C) Interest rates have declined.
D) None of the above are accurate.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate. It is a static value, unlike market value which can fluctuate.

Market Price

The present cost at which a product or service can be purchased or traded within a market.

Interest Rates

The cost of borrowing money or the return earned from lending money, expressed as a percentage of the loan amount charged or earned over a specific period.