As a bond approaches within weeks of its maturity date, its market price

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As a bond approaches its maturity date, its market price tends to approach the face value of the bond. This is because the closer the bond is to maturity, the less uncertainty there is about the timing and amount of future cash flows. Therefore, investors are more willing to pay closer to the face value of the bond as they become more confident that they will receive the full amount at maturity.

As a Bond Approaches Within Weeks of Its Maturity Date