Question

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 1

The correct option is B

The market (purchasers of the bonds)

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.