Question

Bond market values are expressed as a percentage of their par (face) value. For example, a company's bonds might be trading at 103, which means that they can be bought or sold for ____ of their par value. Multiple choice question. 0.103%

Answer 1

The current market price of the bond is 103% of their par value

What percentage is the bond price compared to its par value?

The market bond convention is to quote the price at which the bond can be bought or sold in the market as a percentage of its par value.

The simple approach is to add a percentage sign to any bond price you are given, which means that 97 price means the bond price is 97% of par value.

In the same vein, 103 price means the quoted price of the bond is 103% of the par value of the bond/

Find a futher guide on bond pricing below:

https://brainly.com/question/15574519

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