Which of the following is correct with respect to bonds?
The market value (selling price) of a bond at any given time is determined solely by its stated interest rate.
A bond with a higher stated interest rate than the "going rate" on similar quality bonds will probably sell at a price below its face value.
A bond with a sinking fund provision is riskier than a bond without such a provision.
The amount of the premium or discount on a bond depends largely on how far in the future the maturity date is.
None of these are correct; bond prices are influenced by too many factors to make simple statements.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is correct with respect to bonds?
The market value (selling price) of a bond at any given time is determined solely by its stated interest rate.
A bond with a higher stated interest rate than the "going rate" on similar quality bonds will probably sell at a price below its face value.
A bond with a sinking fund provision is riskier than a bond without such a provision.
The amount of the premium or discount on a bond depends largely on how far in the future the maturity date is.
None of these are correct; bond prices are influenced by too many factors to make simple statements.

Which of the Following Is Correct with Respect to Bonds