Which of the following statements is correct?
A) There is no relationship between the length of time remaining until a bond's maturity and the closeness of the price to 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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