On any given day, a bond can be issued at

Question

Quizplus · Accepted Answer

On any given day, a bond can be issued at a discount, premium, or par. This is because the market conditions and the issuer's creditworthiness and perceived risk can impact the price at which investors are willing to buy the bond. When the bond's coupon rate is lower than the prevailing interest rates, the bond may be issued at a discount to make it more attractive to investors. Conversely, when the bond's coupon rate is higher than the prevailing interest rates, the bond may be issued at a premium. Par value is simply the face value of the bond, and if the bond is issued when the coupon rate equals the prevailing interest rates, it will be issued at par. Therefore, any of the above choices can be the price at which a bond is issued on any given day.

On Any Given Day, a Bond Can Be Issued at