Capital losses will automatically be the case for bond investors who buy:
A)Discount bonds
B)Premium bonds
C)Zero-coupon bonds
D)Junk bonds

Name: Capital losses will automatically be the case for bond investors who buy: A)Discount bonds B)Premium bonds C)Zero-coupon bonds D)Junk bonds
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Question

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Bond investors who buy premium bonds will experience capital losses if they hold the bond to maturity, as the bond will be redeemed at its face value, which is lower than the purchase price.

Capital Losses Will Automatically Be the Case for Bond Investors