If a bond sells for a discount, its price approaches the face value as the bond approaches maturity.

Name: If a bond sells for a discount, its price approaches the face value as the bond approaches maturity.
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Question

​If a bond sells for a discount, its price approaches the face value as the bond approaches maturity.

Quizplus · Accepted Answer

This statement is true. When a bond sells at a discount, its price is below its face value. However, as the bond approaches maturity, the difference between the price and face value decreases until the price approaches the face value at maturity.

​If a Bond Sells for a Discount, Its Price Approaches

If a Bond Sells for a Discount, Its Price Approaches