{"id":15801,"date":"2025-06-10T19:01:18","date_gmt":"2025-06-10T19:01:18","guid":{"rendered":"https:\/\/gaviki.com\/blog\/?p=15801"},"modified":"2025-06-10T19:01:26","modified_gmt":"2025-06-10T19:01:26","slug":"if-bonds-are-sold-at-99","status":"publish","type":"post","link":"https:\/\/gaviki.com\/blog\/if-bonds-are-sold-at-99\/","title":{"rendered":"If bonds are sold at 99"},"content":{"rendered":"\n<p>If bonds are sold at 99, then they are sold at a a. Par b. Face value c. Premium d. Discount<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>The correct answer and explanation is:<\/strong><\/mark><\/p>\n\n\n\n<p>The correct answer is <strong>d. Discount<\/strong>.<\/p>\n\n\n\n<p>Here&#8217;s the explanation:<\/p>\n\n\n\n<p>Bond prices are typically quoted as a percentage of their face value, also known as par value. The face value is the principal amount of the bond, usually $1,000, which the bondholder will receive when the bond matures.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Selling a bond <strong>at par<\/strong> means selling it at 100% of its face value. If the face value is $1,000, selling at par means selling it for $1,000 (100).<\/li>\n\n\n\n<li>Selling a bond <strong>at a premium<\/strong> means selling it for a price <em>higher<\/em> than its face value (more than 100%). For example, selling a $1,000 face value bond at 105 means selling it for $1,050.<\/li>\n\n\n\n<li>Selling a bond <strong>at a discount<\/strong> means selling it for a price <em>lower<\/em> than its face value (less than 100%).<\/li>\n<\/ul>\n\n\n\n<p>When a bond is sold at &#8220;99,&#8221; it means the selling price is 99% of its face value. If the bond&#8217;s face value is $1,000, selling it at 99 means the price is 0.99 * $1,000 = $990.<\/p>\n\n\n\n<p>Since $990 is less than the $1,000 face value, the bond is being sold at a price below its principal amount. This situation, where the selling price is less than the face value, is defined as selling at a discount. Bonds are often sold at a discount when the prevailing market interest rates are higher than the interest rate (coupon rate) the bond pays, making its fixed payments less attractive compared to new bonds being issued.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If bonds are sold at 99, then they are sold at a a. Par b. Face value c. Premium d. Discount The correct answer and explanation is: The correct answer is d. Discount. Here&#8217;s the explanation: Bond prices are typically quoted as a percentage of their face value, also known as par value. The face [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-15801","post","type-post","status-publish","format-standard","hentry","category-quiz-questions"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/15801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=15801"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/15801\/revisions"}],"predecessor-version":[{"id":15802,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/15801\/revisions\/15802"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=15801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=15801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=15801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}