Julie Owns a Bond with a $1000 Par Value

question 11

Multiple Choice

Julie owns a bond with a $1000 par value. If she decides to sell her bond on the secondary market before the maturity date, what might be the result?

• A) She could receive more or less than $1000, because the market price of bonds is free to fluctuate.
• B) She will receive exactly $1000, because that is the guaranteed value of the bond.
• C) She will receive more than $1000, because the bond will pay interest to the buyer, making it an attractive investment.
• D) She will receive less than $1000, because the only time the bond is worth the full par value is at maturity.

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Definitions:

Grocery Store

A retail establishment that sells food and other household goods.

Liquor

Alcoholic beverages that are distilled rather than fermented, resulting in a higher alcohol content.

Food Desert

Areas with limited access to affordable and nutritious food, often found in urban and rural low-income neighborhoods.

Corner Store

A small retail outlet, often found in urban areas or neighborhoods, that stocks a range of everyday items such as groceries, snacks, and household goods.