Which of the following bonds is trading at par?
A) a bond with a $2,000 face value trading at $1,987
B) a bond with a $1,000 face value trading at $999
C) a bond with a $1,000 face value trading at $1,000
D) a bond with a $2,000 face value trading at $2,012

Question

Quizplus · Accepted Answer

A bond trading at par is one that is trading at its face value, which means the bond price equals the bond's par value. In this case, option C is the only bond that meets this definition, as it has a face value of $1,000 and is trading at $1,000, so it is trading at par.

Which of the Following Bonds Is Trading at Par