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:
Verified
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