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NEW QUESTION: 1
Bonds are most often quoted as a percentage of:
A. face value
B. whatever value the broker says
C. book value
D. market value
Answer: A
Explanation:
face value. The price is 100.00 if the yield is the same as the coupon rate. A price of less
than 100.00 means the yield is higher than the coupon rate. A price of more than 100.00 means the yield
is lower than the coupon rate. The prices are a percentage of 100.00. However, treasury bonds and
municipal bonds are not quoted in this way.