Bond market indexes can be difficult to construct because
A) they cannot be based on firms'market values.
B) bonds tend to trade infrequently, making price information difficult to obtain.
C) there are so many different kinds of bonds.
D) prices cannot be obtained for companies that operate in emerging markets.
E) corporations are not required to disclose the details of their bond issues. Bond trading is often "thin," making prices stale (or not current).

Question

Quizplus · Accepted Answer

Bond trading can be infrequent, which makes obtaining accurate price information difficult. This can make it challenging to construct bond market indexes. Additionally, there are many different types of bonds, which further complicates the creation of a comprehensive index.

Bond Market Indexes Can Be Difficult to Construct Because