If the entity is offering a higher interest rate on debentures than the market believes is appropriate, the market will: be prepared to pay more than the par value of the debentures, offering a premium. be prepared to pay less than the par value of the debentures, offering a discount. be prepared to pay less than the par value of the debentures, offering a premium. be prepared to pay more than the par value of the debentures, offering a discount