Finance · Financial Markets
What does it mean when a bond is traded 'flat'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bond has a fixed interest rate that never fluctuates with market conditions
- 2The buyer must pay the accrued interest separately in addition to the market price
- 3The traded price includes consideration for all unpaid accrued interest✓
- 4The bond is traded at its exact par value without any market premium
Correct answer
The traded price includes consideration for all unpaid accrued interest
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