Which of the following does not affect the market price of an outstanding bond issue?
A)Fluctuations in the current market rate of interest.
B)The credit rating of the issuing corporation.
C)The price at which the bonds were originally issued.
D)The length of time remaining until the bonds' maturity date.

Question

Quizplus · Accepted Answer

Once a bond issue has been issued at a certain price, that price is fixed and does not change. Fluctuations in market interest rates, changes in the issuing corporation's credit rating, and the length of time until maturity can all affect the market price of the bond issue.

Which of the Following Does Not Affect the Market Price