Bond prices are expressed as a percentage of:
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A. B. C. D.B
Bond prices are typically expressed as a percentage of the bond's par value. The par value of a bond is the face value or the amount of money that the issuer promises to pay the bondholder at maturity. The par value is usually set at $1,000 or multiples thereof, although it can be set at any value the issuer chooses.
For example, if a bond has a par value of $1,000 and is trading at 105, this means that the bond is priced at 105% of its par value, or $1,050. If the bond is trading at 95, it means that the bond is priced at 95% of its par value, or $950.
Bond prices can fluctuate due to a variety of factors, such as changes in interest rates, creditworthiness of the issuer, and market conditions. When interest rates rise, bond prices tend to fall, and when interest rates fall, bond prices tend to rise. This is because as interest rates increase, newly issued bonds will offer higher yields, making existing bonds less attractive and causing their prices to fall.
In summary, the correct answer to this question is B. Par value. Bond prices are typically expressed as a percentage of the bond's par value.