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.

most historians agree that gabriel mouton, the vicar of st. paul’s church in lyons, france, is the “founding father” of the metric system. he proposed a decimal system of measurement in 1670. mouton based it on the length of one minute of arc of a great circle of the earth (now called a nautical mile, 1852 meters). he also proposed the swing-length of a pendulum with a frequency of one beat per second as the unit of length (about 25 cm). a pendulum beating with this length would have been fairly easy to produce, thus facilitating the widespread distribution of uniform standards. over the years, his work was revised, improved, and extended by a number of french scientists.

the political sponsor of weights and measures reform in the french revolutionary national assembly was the bishop of autun, better known as talleyrand. under his auspices, the french academy appointed several committees to carry out the work of developing a usable system of weights and measures for france. one of the committees recommended a decimalized measurement system based upon a length equal to one ten-millionth of the length of a quadrant of the earth’s meridian (i.e., one ten-millionth of the distance between the equator and the north pole).