Most of the bonds that are bought and sold are not transacted on the organized exchanges.They are bought and sold through bond dealers who do not sell many ________ bonds but do trade many ________ bonds in the secondary market.
A)corporate;government
B)high par value;corporate
C)government;low par value
D)corporate;firm-specific bonds

Question

Quizplus · Accepted Answer

Corporate bonds are typically issued in large denominations which makes it difficult for individual investors to buy and sell them in the secondary market. On the other hand, government bonds are more liquid and trade in higher volumes, making them more accessible to institutional investors and bond dealers. Therefore, most of the bonds sold in the secondary market are government bonds as opposed to corporate bonds.

Most of the Bonds That Are Bought and Sold Are