Final answer:
When bonds are issued, the market price at the time of issuance is typically equal to their present value. This present value is influenced by the bond's face value, coupon rate, maturity date, and current market interest rates and may differ from the face value depending on the market conditions.
Step-by-step explanation:
The question pertains to the financial aspects related to bonds. The phrase 'will equal the market price on the date of issuance' is trying to identify what component of a bond will match the market price when the bond is issued. The answer to this is not explicitly stated in the incomplete sentence provided, but we can infer it refers to the bond's present value, which is what a buyer would be willing to pay for a bond on the issuance date. This present value is influenced by the bond's face value, coupon rate, maturity date, and the market interest rates. If a bond is issued when market interest rates are equivalent to the bond's coupon rate, its issue price is likely to be its face value. However, interest rate fluctuations may lead to a situation where the present value differs from the face value.