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If a Bond Was Issued at Par, the Quoted Price

Question 1

Multiple Choice

If a bond was issued at par, the quoted price of the bond will not necessarily equal the par value of the bond after issuance because:


A) time to maturity has shortened and the company is older.
B) time to maturity has shortened and interest has accrued.
C) interest has accrued and the company is older.
D) market interest rates have changes and/or interest has accrued.
E) market interest rates have changes and the company is older.

Correct Answer:

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