Question

Factors that affect the market price of bonds include all of the following except:

Answer 1

(A) Length of time until maturity

(B) Purchasers’ credit rating

(C) Market rate of interest

(D) issuing companies’ credit rating

Answer (B): Purchasers’ credit rating

Explanation: It gives assessments of a bond issuer’s monetary strength and ability to reimburse the main principal and its interest as indicated by the agreement. Long-term credit scores will in general be more demonstrative of a country’s investments in environmental elements and also of an organization’s capacity to respect its obligation of debt.