Apex Inc. issues a bond of $1,000 which pays interest semiannually at a coupon interest rate of 8%. The maturity of the bond is 15 years. Where should this bond be traded?

Question

Quizplus · Accepted Answer

This bond should be traded in the capital market, which is a market for long-term securities such as stocks and bonds. The fact that the bond has a 15-year maturity and pays semiannual interest at a coupon rate of 8% indicates that it is a long-term bond, and thus suitable for trading in the capital market. The forex market is for foreign currency exchange, the money market is for short-term debt securities with maturities of one year or less, and the commodities market is for trading in physical commodities such as oil and gold.

Apex Inc Issues a Bond of $1,000 Which Pays Interest Semiannually