Nick asked in Business & FinanceInvesting · 9 years ago

Accounting- bonds question?

the bond's_____ price is typically quoted as a percentage of the face value of the bond.

does anyone know what would go in the blank?? Ive tried it numerous times, but cant figure out the answer.

Thanks alot.

3 Answers

  • JKRB
    Lv 7
    9 years ago
    Favorite Answer

    It would be the "selling" price or the "issue" price. For instance, if the face value of a bond is 100,000 and the bonds are sold at 97, it means that the bonds will be issued at 97% of 100,000 or 97,000.

  • 9 years ago

    Well, if you removed ________ "Price" and reworded as follows:

    The bond's ________ is typically quoted as a % of the face value of the bond then "coupon" would be appropriate. For example:

    if a $100 face value bond paid $5.00 annually, then it would be quoted as "xyz bond is issued at $100 par value with a coupon of 5%"

    Be sure not to confuse the coupon (dollar payment which remains static) with "yield" which is what the bond is actually paying. If you bought the above 5% bond at $110, it would yield 4.5%

  • M
    Lv 6
    9 years ago

    I'd guess maybe "market" price? That's the only thing I can think of. It's kind of a badly written question though, oh well. Good luck!

Still have questions? Get your answers by asking now.