Bond prices are quoted in terms of which of the following?
A) Original issue discount
B) Percent of par value
C) Coupon rate in dollars
D) Market rate in dollars

Question

Quizplus · Accepted Answer

Bond prices are quoted as a percentage of the bond's par value. This is because most bonds are issued with a par value of $1,000, so the price of the bond is a percentage of that $1,000 (for example, a bond priced at 95 would cost $950). coupon rate is the interest paid on the bond, and original issue discount and market rate are both factors that affect the price of the bond but are not used to quote the price.

Bond Prices Are Quoted in Terms of Which of the Following