In bond quotations, prices are quoted as
A) points to be converted to dollars.
B) dollars and cents.
C) a percentage of face value.
D) a percentage of market value.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

Bond prices are typically quoted as a percentage of face value, also known as par value. For example, if a bond has a face value of $1,000 and is quoted at 98.5, it means the bond is trading at 98.5% of its face value or $985. This convention allows for easier comparison of bond prices regardless of face value.

In Bond Quotations, Prices Are Quoted as