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If You Need to Sell a Bond on the Secondary

Question 18

Multiple Choice

If you need to sell a bond on the secondary market before the maturity date,_________________.


A) You will receive only the exact amount you invested
B) You will receive less than face value if current interest rates are higher than your bond
C) You will receive more than face value if current interest rates are higher than your bond
D) You will receive less than face value if current interest rates are lower than your bond

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