The price of a bond bought at a discount cannot go down in the financial markets.

Name: The price of a bond bought at a discount cannot go down in the financial markets.
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Question

Quizplus · Accepted Answer

The price of a bond bought at a discount can go down in the financial markets depending on various factors such as changes in interest rates, credit ratings, and economic conditions. When interest rates rise, the value of existing bonds decreases, causing prices to drop even further. So, the statement is false.

The Price of a Bond Bought at a Discount Cannot