Which bond has a closing market price equal to its par value based on the quoted bond prices?

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

In the context of bond prices, a bond that has a closing market price equal to its par value is selling at par. This typically indicates that the bond is trading at its nominal value, meaning that it offers an interest rate (or coupon rate) that is equal to current market rates for similar bonds.

The bond identified as MaxCo10s10 suggests that it has a coupon rate of 10% and a maturity date in 2010. If this bond has a market price that matches its par value, it indicates that the yield is consistent with current market conditions, aligning with interest rates for bonds of similar credit quality and duration.

When bonds trade at par, this implies that their coupon payments are attractive enough to investors, meaning there is no discount or premium applied to the bond's price. Other bonds listed in the options may have market prices that diverge from their par values due to differences in either the coupon rates or prevailing interest rates, leading them to trade at a discount or premium instead.

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