Solved

Julie Owns a Bond with a $1000 Par Value

Question 115

Multiple Choice

Julie owns a bond with a $1000 par value. If she decides to sell her bond on the secondary market before the maturity date, what might be the result?


A) She could receive more or less than $1000, because the market price of bonds is free to fluctuate.
B) She will receive exactly $1000, because that is the guaranteed value of the bond.
C) She will receive more than $1000, because the bond will pay interest to the buyer, making it an attractive investment.
D) She will receive less than $1000, because the only time the bond is worth the full par value is at maturity.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents