Not long after the United Kingdoms vote to leave the European Union, the yields on some British

Question:

Not long after the United Kingdom’s vote to leave the European Union, the yields on some British Government bonds (called gilts) turned negative. Assuming that these bonds were issued with a positive coupon rate, would you expect their market prices to be above, below or equal to their face value? Explain your choice.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...