Bonds are most often quoted as a percentage of:
A)face value
B)book value
C)market value
D)whatever value the broker says

Question

Quizplus · Accepted Answer

face value. The price is 100.00 if the yield is the same as the coupon rate. A price of less than 100.00 means the yield is higher than the coupon rate. A price of more than 100.00 means the yield is lower than the coupon rate. The prices are a percentage of 100.00. However, treasury bonds and municipal bonds are not quoted in this way.

Bonds Are Most Often Quoted as a Percentage Of