Which of the following statements is correct?
A) The farther the bond's term is from its maturity, the farther the price is from its face value.
B) The closer the bond's term is to its maturity, the farther the price is from its face value.
C) The farther the bond's term is to its maturity, the closer the price is to its face value.
D) The closer the bond's term is to its maturity, the closer the price is to its face value.
Correct Answer:
Verified
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