Finance · Face Value
Which of the following statements accurately describes the relationship between a bond's face value and its market value?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Face value rises automatically whenever market value drops.
- 2Market value is determined by multiplying face value by inflation.
- 3Face value is not a direct indication of market value.✓
- 4Face value is always equal to the market value.
Correct answer
Face value is not a direct indication of market value.
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