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If a Bond Is Sold in the Secondary Market

Question 41

Multiple Choice

If a bond is sold in the secondary market,


A) the issuing firm is buying back its own bond
B) the issuing firm does not obtain any part of the price
C) the seller remits a portion of the price to the issuing firm
D) the yield must be insufficient to justify sale on the primary market
E) the seller is the issuing firm

Correct Answer:

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