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The _____ of a bond fluctuates continuously during its life.
a. market value
b. face value
c. maturity value
d. principal value

Sagot :

The market value of a bond fluctuates continuously during its life.

The market value of a bond has two parts:

The value of the amount of the bond itself or its face value, and the value of the interest the investor would receive if investor held on to the bond until it matures. The total of these two amounts is a bond’s market value.

It means that bond's value is obtained by adding the interest to be received by the investor and the face value of the bond.

To determine a bond’s market value, investor will need its face value, the number of interest payments due to him  before its maturity date and the percentage of interest it pays throughout the time period.

To know more about the bond's market value here:

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