A bond's discount or premium will get smaller and finally disappear as the bond approaches its maturity date.

Name: A bond's discount or premium will get smaller and finally disappear as the bond approaches its maturity date.
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Question

Quizplus · Accepted Answer

This occurs because the bond's market value converges to its par value as it nears maturity, leading to the amortization of the discount or premium over the bond's life.

A Bond's Discount or Premium Will Get Smaller and Finally