Consider two bonds,Bond A and Bond B,offered for sale in the same market for financial assets: - Bond A has a face value of $1000,a market price of $971,and matures in one year.
- Bond B has a face value of $1000,a market price of $926,and matures in one year.
Which of the following statements about Bonds A and B are correct?

Question

Quizplus · Accepted Answer

Bond B is perceived as a riskier asset than Bond A because it has a lower market price compared to its face value. A lower market price indicates higher perceived risk by investors. Therefore, statement A is incorrect. Additionally, statement C is also incorrect because Bond A has a higher present value as its market price is closer to its face value. Finally, statement D is not necessarily true based on the given information.

Consider Two Bonds,Bond a and Bond B,offered for Sale in the Same