Question

Which of the following is not true about the market

Q: Answer-Which of the following is not true about the market value of a bond?

A bonds market value is the price at which you could sell the bond to another investor prior to the bond coming due. Ideally it should reflect the present value of all the future cash flows related to the bond. This price may be different from the face value or the redemption value of the bond.

value of a bond?

A It is the price at which a bond is usually purchased or sold.

B It may be different from face value

C It can be different from the redemption value

D All of the above

E None of the above

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Which of the following is not true about the market

Solution