All else the same, as a premium bond approaches maturity its price ______, and the price of a discount bond ______.

Name: All else the same, as a premium bond approaches maturity its price ______, and the price of a discount bond ______.
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Question

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As a premium bond approaches maturity, its price will decrease because the bond's price must approach its face value. Conversely, as a discount bond approaches maturity, its price will increase because the bond's price must also approach its face value.

All Else the Same, as a Premium Bond Approaches Maturity