what is the relationship between coupon rate and par value 
the coupon rate the periodic interest payments made to bondholders as compensation for loaning the issuer the money and the market interest rates determine whether a bond will trade at below or above its par value if the coupon rate equals the interest rate the bond will trade at its par value if interest rates rise the price of a lower coupon bond must decline to offer the same yield to investors causing it to trade below its par value if interest rates fall then the price of a higher coupon bond will rise and trade above its par value since its coupon rate is more attractive 