What should happen to prices of zero-coupon securities as time passes?

Name: What should happen to prices of zero-coupon securities as time passes?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Zero-coupon securities are sold at a discount to their par value, which means that as time passes, their prices should approach par value. This is because the closer the security gets to maturity, the smaller the discount should be, until it reaches zero at maturity. Therefore, the correct answer is B.

What Should Happen to Prices of Zero-Coupon Securities as Time