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

Question

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The Answer of Which of the following is correct with respect to bonds?
A) The market value (selling price) of a bond at any given time is determined solely by its stated interest rate.
B) 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.
C) A bond with a sinking fund provision is riskier than a bond without such a provision.
D) The amount of the premium or discount on a bond depends largely on how far in the future the maturity date is.
E) 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