Lower coupon bonds were hit the hardest in the recent selloff as prices declined much faster than premium bonds, leading some investors to say discount bonds are now cheap enough to buy.

Though lower coupon bonds don’t hold up as well in a rising interest rate environment, a slew of 2% and 3% coupon bonds dropped to the 70-80 price range, making them much more attractive to the retail investor than 4% and 5% coupons priced over 100.

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