Bond market indexes can be difficult to construct because

Question

Quizplus · Accepted Answer

Bond market indexes can be difficult to construct because bonds tend to trade infrequently, making price information difficult to obtain. This can lead to a lack of accurate and up-to-date pricing data, which makes it challenging to construct a reliable index. While there are many different kinds of bonds, this is not necessarily a major impediment to constructing an index, as the index can be designed to track a specific set of bonds. Prices can also be obtained for companies that operate in emerging markets, although it may be more challenging to do so due to a lack of transparency in some markets.

Bond Market Indexes Can Be Difficult to Construct Because