Which of the following statements is correct?
a. bonds sell for their face amount if they are issued near the original interest date.
b. bonds may sell below, above, or at their face amount.
c. bonds always sell for their face amount.

B.Bonds may sell below, above, or at their face amount.

Explanation:

When bonds are issued or subsequently traded with them, they may have a different price than the origin or issue. For example, a company that issues 10 million euros in 10,000 bonds, will be said to have issued credits at the same time as 100 euros. If I decide to issue bonds above their nominal value, with a premium, we would say that they are bonds on par or with a premium; while bonds below their nominal value would be bonds under par or with discount.

The par bonus is paid according to the nominal one, so that if we have a 5% annual bonus on the previous example, we will receive 5 euros annually for each bond, the value of the bond remaining unchanged.

However, peer-to-peer bonds are not such continuously over time, but transactions can be made at a price different from the original. For example, imagine that we have a bond with a nominal value of 1,000 euros, but that we decided to sell it with a 20% premium. In this case the bonus will be over par, and the sale price would be 1,200 euros, so the total return obtained will be the premium and the sum of all those coupons collected.

On the other hand, if we decide to sell the bond below the nominal value for some reason, it will be a low par bond, with the losses incurred between the sale and the nominal value.

explanation:

a