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

Question

Responses

an investor sells a bond to another investor
an investor sells a bond to another investor

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

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 from a corporation

Answer 1

The correct response is:

an investor sells a bond to another investor.

This scenario is an example of a bond being traded on the secondary market, where existing bonds are bought and sold among investors rather than being issued directly by the issuer.