Marco should explain to Julie that when someone buys a $1,000 bond, he or she is buying cash flows (payments back to him or her) that include interest payments only. that include interest payments plus $1,000 paid sometime in the future. The interest payments he or she receives are based on the market rate of interest at the time the bond is issued. market rate of interest upon maturity of the bond. stated rate of interest on the bond. If the stated rate of interest is higher than the prevailing market rate of interest for a similar $1,000 bond, then he or she is buying a bond that will pay back less money than more money than the same amount of money as the market rate bond would. Because of this, he or she is only willing to pay $1,000 for the $1,000 bond. is willing to pay some amount less than $1,000 for the $1,000 bond. is willing to pay more than $1,000 for the $1,000 bond. The opposite is true The opposite, however, is not true if the stated interest rate on the bond is less than the market rate. The buyer will get less value from that bond than the market rate bond more value from that bond than the market rate bond the same value from that bond as the market rate bond , so he or she is only willing to buy the $1,000 bond for less than $1,000. is only willing to pay $1,000 for the $1,000 bond. is willing to pay more than $1,000 for the $1,000 bond.