This week’s study question from the Solomon Online Exam Simulator question database is now available.
10 bond points on a corporate bond is equivalent to:
D. 10% of a bond’s current value
Correct Answer: B. $100
Rationale: A “point” is an abbreviated term for “one percentage point” of the par value. With regards to corporate bonds, it generally refers to $10 increments of a $1,000 par value bond’s price.
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