Malcolm has purchased a corporate bond that will mature in two years, but he does not want to hold it for such a long length of time. What option is available to Malcolm?(1 point)

Responses

Malcolm may trade his bond on the secondary market.
Malcolm may trade his bond on the secondary market.

Malcolm may sell his bond on the stock market.
Malcolm may sell his bond on the stock market.

Malcolm may trade his bond on the primary market.
Malcolm may trade his bond on the primary market.

Malcolm may sell his bond on the money market.

1 answer

The correct option for Malcolm is:

Malcolm may trade his bond on the secondary market.

This is where existing bonds are bought and sold between investors, allowing Malcolm to sell his bond before it matures.