If a Bond Is Sold in the Secondary Market

question 50

Multiple Choice

If a bond is sold in the secondary market,

• A)the issuing firm is buying back its own bond
• B)the issuing firm does not obtain any part of the price
• C)the seller remits a portion of the price to the issuing firm
• D)the yield must be insufficient to justify sale on the primary market
• E)the seller is the issuing firm

---

Definitions:

Profane

Not relating to that which is sacred or religious; secular.

Everyday World

The realm of daily life where individuals engage in routine activities and interactions.

Durkheim

Emile Durkheim, a foundational French sociologist, is known for his works on social solidarity, collective conscience, and the role of social integration in maintaining societal order.

Profane

That which is ordinary or not sacred, often referring to everyday objects and concerns outside the realm of the religious or holy.