In the bond market, the seller is considered to be
A)the lender.
B)the borrower.
C)the lender or the borrower depending upon the use to which the funds are put.
D)the lender or the borrower depending upon whether interest rates are rising or falling.

Question

Quizplus · Accepted Answer

In the bond market, the seller is the borrower. This is because when an entity (such as a corporation or government) issues a bond, they are borrowing money from investors who purchase the bond. The seller is also known as the issuer of the bond.

In the Bond Market, the Seller Is Considered to Be