Corporate bonds are not as liquid as Canada bonds because ________.
A) fewer corporate bonds for any one corporation are traded, making them more costly to sell
B) the corporate bond rating must be calculated each time they are traded
C) corporate bonds are not callable
D) corporate bonds cannot be resold

Question

Quizplus · Accepted Answer

The liquidity of a bond depends on the frequency of trades and the availability of buyers and sellers. Since there are typically fewer corporate bonds for any one corporation traded, they can be more expensive to sell compared to Canada bonds, which have a more active and robust market.

Corporate Bonds Are Not as Liquid as Canada Bonds Because