If a Bond Was Issued at Par, the Quoted Price

question 27

Multiple Choice

If a bond was issued at par, the quoted price of the bond will not necessarily equal the par value of the bond after issuance because:

• A) time to maturity has shortened and the company is older.
• B) time to maturity has shortened and interest has accrued.
• C) interest has accrued and the company is older.
• D) market interest rates have changes and/or interest has accrued.
• E) market interest rates have changes and the company is older.

---

Definitions:

Heredity

The passing of traits or characteristics from parents to offspring through genes.

Environmental-Mold Trait

A characteristic or tendency believed to be shaped by one's surroundings and experiences.

Constitutional Traits

Characteristics or qualities of an individual that are considered to be inherent or innate, often relating to physical constitution.

Source Traits

Fundamental characteristics or attributes that define an individual's personality, as proposed in Raymond Cattell's personality theory.