Explain why bonds don’t always sell at their face value.

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Explain why bonds don’t always sell at their face value.

In your initial post explain why bonds don’t always sell at their face value. Why would they sell for more or less than their face value? If your broker wanted you to purchase a 6% bond when investments with similar risk were paying 8% how much would you be willing to pay for the bond? Why? Why is risk important in valuing bonds?

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