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.
- JKRBLv 79 years agoFavorite 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%
- MLv 69 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!