Which of the following statements is NOT correct? Discount bonds:
A)make a capital gain when held to maturity.
B)sell below their face value.
C)have a price equal to their face value.
D)are subject to price risk when sold before maturity.

Question

Quizplus · Accepted Answer

Discount bonds do not have a price equal to their face value; they are sold below face value and make a capital gain when held to maturity.

Which of the Following Statements Is NOT Correct? Discount Bonds