Who determines the price at which bonds will sell?

(A) The issuing company

(B) The market (purchasers of the bonds)

(C) The bonds underwriters

(D) The SEC

Answer (B): The market (purchasers of the bonds)

Explanation: Bond costs vary on the open market because of an open market for the bond. Moreover, the cost of a bond is controlled by limiting the normal income to the current utilizing a rebate or discount rate. The three essential effects on security valuing on the open market are organic or open market’s supply and demand, term to maturity, and credit quality.

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