Which type of bond is certain to provide a capital loss if held to maturity?
A) Discount bond
B) Premium bond
C) Zero-coupon bond
D) Junk bond

Name: Which type of bond is certain to provide a capital loss if held to maturity? A) Discount bond B) Premium bond C) Zero-coupon bond D) Junk bond
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Question

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A premium bond is sold above its face value, and if held to maturity, it will return only the face value, resulting in a capital loss.

Which Type of Bond Is Certain to Provide a Capital