Which of the following is(are) a true statement(s) pertaining to bonds?
A) Bonds can be sold at a discount, par, or payable.
B) Bonds can be sold at a discount, par, or premium.
C) The SEC sets the market price of a bond.
D)The issuing firm sets the price of a bond.

Question

Quizplus · Accepted Answer

Bonds can be sold at different prices - at a discount (lower than face value), par value (equal to face value), or at a premium (higher than face value). The market price of a bond is determined by supply and demand in the bond market and is not set by the SEC. The issuing firm sets the coupon rate and the face value of the bond, but not the market price.

Which of the Following Is(are) a True Statement(s) Pertaining to Bonds