Final answer:
Bonds sold at face value have an interest rate equal to the market interest rate, as the bond prices adjust to align the yield with prevailing market conditions. The correct option in the final part of the question is d. equal to.
Step-by-step explanation:
When bonds are sold at their face value, the interest rate that these bonds offer is typically the same as the prevailing market interest rate. This relationship exists because the market adjusts the bond prices to ensure that they yield a return that is comparable to other investments available in the market. If the market interest rate rises after the bond is issued, the value of the bond will decrease and it will sell for less than its face value as investors can find more attractive rates elsewhere. Conversely, if market interest rates fall, the bond will sell for more than its face value; this is because the bond's fixed interest rate becomes more appealing compared to the new lower market rates.
Therefore, if bonds are being sold at face value, it means that their interest rates have adjusted to match the market rates. If they did not, the bond prices would either rise above face value (if market rates fell) or fall below it (if market rates rose), as investors seek to balance the yield on these bonds with the interest rates available elsewhere. Considering these concepts and reflecting on the examples provided, the correct option in the final part of the question is d. equal to.