Which of the Following Bonds Is Trading at Par

question 44

Multiple Choice

Which of the following bonds is trading at par?

• A)a bond with a $2000 face value trading at $1987
• B)a bond with a $1000 face value trading at $999
• C)a bond with a $1000 face value trading at $1000
• D)a bond with a $2000 face value trading at $2012
• E)a bond with a $1000 face value trading at $1200

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Definitions:

Stockholders Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership value.

Assets

Economic resources owned by a business or individual that are expected to provide future benefits.

Par Value

The face value of a bond or stock as stated by the issuer, which bears importance in the legal capital of a company.

Land

A physical, immovable property asset, representing the earth's surface not including bodies of water or resources below the surface.