If you buy a bond that is selling for less than its face, or maturity, value then the price (value) of the bond will increase the maturity date nears if market interest rates do not change during the life of the bond.

Question

Quizplus · Accepted Answer

This is because as the maturity date nears, the bond's price will gradually increase towards its face value, making it a profitable investment. This assumes that market interest rates stay the same, which affects the price of the bond inversely.

If You Buy a Bond That Is Selling for Less