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The issue price of a bond is ______. (Select all that apply.) Multiple select question. determined by the company issuing the bonds based on what the market is willing to pay based on a present value calculation determined by the financial advisers

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Martebiidn

There are different factors that determines the price of a bond. The issue price of a bond is based on what the market is willing to pay.

The price of a bond is usually known by discounting the expected cash flow to the present using a discount rate. The three factors that affects bond pricing on the open market are supply and demand, term to maturity, and credit quality.

The issue price of a bond is often known by the relationship between the interest rate that the bond pays and the market interest rate being paid on the same date. The different ways needed to known the issue price is to know the interest paid by the bond and other factors.

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