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bonds

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › bonds

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • December 11, 2020 at 1:53 am #599307
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir when bonds are first floated in the primary market then do they get offloaded at the face value itself (say, $100)? Or their floating price is determined by the demand and supply forces in the primary market on which the issuing entity has no control whatsoever?

    thanks!

    December 11, 2020 at 6:30 am #599328
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54738
    • ☆☆☆☆☆

    The company determines the issue price and it will usually be the nominal value (but they can issue them at a discount if they want to).

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