The statement is true: Bonds are sold at face value when the contract rate is equal to the market rate of interest.
Bonds are often sold at face value in a situation where the contract rate is the same as the market rate of interest.
For a bonds to be sold at a discount it means that face value of the bond is equal to the book value of the bonds minus discount unamortized.
Or when the bonds rate of interest or coupon rate is lower than the bonds market rate the bond sell at discount because the bonds is sold out below the face value.
Inconclusion bonds are sold at face value when the contract rate is equal to the market rate of interest.
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