Which of the Following Bonds Is Trading at Par

question 43

Multiple Choice

Which of the following bonds is trading at par?

• A) a bond with a $2,000 face value trading at $1,987
• B) a bond with a $1,000 face value trading at $999
• C) a bond with a $1,000 face value trading at $1,000
• D) a bond with a $2,000 face value trading at $2,012

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Definitions:

Cumulative Net Profit

The total net profit of an entity over a period, accumulating all the net profits and losses from each period within the timeframe.

Fourth Year

Usually refers to the final year of a four-year educational program, such as a high school or university degree.

Probability

The likelihood of a specific event or outcome occurring, expressed on a scale from 0 (impossible) to 1 (certain).

Cumulative Profit

Cumulative profit is the total sum of profit earned over a period of time.