A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond.a.zero couponb.par valuec.discountd.floating ratee.premiumThe correct answer is: par value3 / 25
Question
A bond with a face value of 1,000 in the market is called a _____ bond.a.zero couponb.par valuec.discountd.floating ratee.premiumThe correct answer is: par value3 / 25
Solution
A bond that has a face value of 1,000 in the market is referred to as a par value bond. This is because the selling price is equal to the face value of the bond. Therefore, the correct answer is par value.
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