Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

5 bonds are likely to be bought and sold several times during their lif…

Question

5 bonds are likely to be bought and sold several times during their life span.

true
false

Explanation:

Define secondary market trading

Using the Stocks and Bonds and Government Bonds knowledge points
Bonds are actively traded on secondary markets after issuance, meaning investors frequently buy and sell them before maturity.

Determine statement validity

Because of this active secondary market, a single bond is highly likely to change hands multiple times during its life span. Thus, the statement is true.

Answer:

  • True (Correct answer)
  • False