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

Quizplus · Accepted Answer

Premium bonds are sold above their face value, and as they approach maturity, their price will decrease to match the face value, resulting in a capital loss for the investor.

Capital Losses Will Automatically Be the Case for Bond Investors