Bond Market Indexes Can Be Difficult to Construct Because

question 44

Multiple Choice

Bond market indexes can be difficult to construct because

• A) they cannot be based on firms' market values.
• B) bonds tend to trade infrequently, making price information difficult to obtain.
• C) there are so many different kinds of bonds.
• D) prices cannot be obtained for companies that operate in emerging markets.
• E) corporations are not required to disclose the details of their bond issues.

---

Definitions:

Futures Price

The agreed-upon price for the sale of an asset at a future date, typically used in commodities and financial instrument trading.

Stock Index Futures

Financial contracts that obligate the buyer to purchase, and the seller to sell, a specific stock index at a predetermined future date and price.

Multiplier

An economic factor that quantifies the impact of a change in one economic variable on another.

Euros

The official currency of the eurozone, which is used by 19 of the 27 European Union countries, known as the euro area.