When a note or bond is selling at a discount under its par value and carries various possible maturity dates, the yield on the note or bond is generally figured to the nearest maturity date.

Question

Quizplus · Accepted Answer

When a note or bond is selling at a discount, the yield is generally figured to the nearest maturity date because this is the date when the investor will receive the full face value of the note or bond.

When a Note or Bond Is Selling at a Discount