Which of the following is an example of a bond being traded on the secondary market?(1 point)

Question

Responses

an investor purchases a bond from the U.S. Treasury
an investor purchases a bond from the U.S. Treasury

an investor purchases a bond directly from a municipality
an investor purchases a bond directly from a municipality

an investor purchases a bond from a corporation
an investor purchases a bond from a corporation

an investor sells a bond to another investor

Answer 1

The correct example of a bond being traded on the secondary market is:

an investor sells a bond to another investor.

In the secondary market, bonds are bought and sold among investors, rather than being purchased directly from the issuer.