The issue price of a bond is:
A)always equal to $1,000.
B)based on a present value calculation.
C)determined by the company issuing the bonds.
D)determined by the financial advisers.

Question

Quizplus · Accepted Answer

The bond issue price represents the amount that investors are willing to pay on the issue date in exchange for the cash payments that the company promises to make over the life of the bond.Theoretically,the issue price is based on a mathematical calculation (called a present value)of both amounts.

The Issue Price of a Bond Is