Question

The price of bonds will reflect the conditions in the economy and the financial markets. Complete...

The price of bonds will reflect the conditions in the economy and the financial markets. Complete the following statements:
​The issuer of bonds will seek the HIGHEST / LOWEST price.
​The buyer of the bonds will seek the HIGHEST / LOWEST price
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Answer #1

1)

Issuer of bond gets money on selling his bond to buyers. Thus, issuer earning depends on selling price. or issue will seek Highest price to collected maximum amount

Thus, right answer: Highest price.

2)

On other side, opposite is true for buyers. Buyers want pay minimum possible price for bond. Thus, he will seek lowest price.

Right answer: Lowest price.

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