In cases where the coupon rate of interest differs from the market rate on the date that bonds are sold, the present value of the bond issue will not equal the face amount of the bond. Consider, for example, an investor buying a bond when the coupon rate is below the market rate of interest. Because the coupon rate does not provide the investor with a rate of return equal to that available on other similar investments, the investor will buy the bonds only if they are sold at a discount from the par or face value. Bear in mind that the bond contract represents a fixed series of cash paymentsto bondholders. The present value of any fixed series of cash payments depends on the discount rate, which in this case is the market rate of interest.