A Bond Traded at 102½ Means That

question 151

Multiple Choice

A bond traded at 102½ means that:

• A)The bond pays 2.5% interest.
• B)The bond traded at 102.5% of its par value.
• C)The market rate of interest is 2.5%.
• D)The bonds were retired at $1,025 each.
• E)The market rate of interest is 2½% above the contract rate.

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Definitions:

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