Which of the following best describes a characteristic of a bond?
A)The maturity of a bond refers to the amount to be paid back.
B)The principal of the bond refers to the person selling the bond.
C)A bond buyer cannot sell a bond before it matures.
D)The interest paid by a bond depends on its price.

Question

Quizplus · Accepted Answer

The interest paid by a bond, often referred to as the yield, can vary depending on the bond's price in the market. As bond prices fluctuate, the yield adjusts inversely.

Which of the Following Best Describes a Characteristic of a Bond