Which of the following statements about a bond that is selling at a discount is correct?
A) Because the coupon rate remains constant, the market value of the bond also remains constant throughout its life.
B) The market price of the bond will be greater than the bond's face value.
C) The market price of the bond will increase and will approach its face value as the maturity date gets closer.
D) Both the market price of the bond and the interest received will increase as the maturity date nears.
E) The par value of the bond will increase with every increase in the market price of the bond until the maturity date is reached.
Correct Answer:
Verified
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