As a bond approaches its maturity date, its sales price approaches
A) the price of comparable bonds.
B) U.S. Treasury bond prices.
C) the par value.
D) the par adjusted for yield to maturity.

Question

Quizplus · Accepted Answer

As a bond approaches its maturity date, its sales price approaches the par value. This is because at maturity, the bond will be repaid at its par value, so investors are willing to pay closer to that amount as the maturity date gets closer.

As a Bond Approaches Its Maturity Date, Its Sales Price