What is the minimum denomination for publicly traded corporate bonds?

What is the minimum denomination for publicly traded corporate bonds?

• A. $500
• B. $1,000
• C. $5,000
• D. $10,000

Answer: (B)

Publicly traded corporate bonds are issued with standard par values to keep trading uniform. The typical minimum denomination is one thousand dollars. That means each bond has a face value of $1,000, and prices are quoted as a percentage of that par value; for example, a price of 102.25 represents $1,022.50 for one bond. This convention supports liquidity and makes it easy to compare yields across different issuances. While some issues or private placements can have higher par values, the standard minimum for most publicly traded corporate bonds is $1,000.

Publicly traded corporate bonds are issued with standard par values to keep trading uniform. The typical minimum denomination is one thousand dollars. That means each bond has a face value of $1,000, and prices are quoted as a percentage of that par value; for example, a price of 102.25 represents $1,022.50 for one bond. This convention supports liquidity and makes it easy to compare yields across different issuances. While some issues or private placements can have higher par values, the standard minimum for most publicly traded corporate bonds is $1,000.