U.S.Savings Bonds are sold at a discount.The face value of the bond represents its value on its future maturity date.Therefore
A) the current price of a $50 face value bond that matures in 10 years will be greater than the current price of a $50 face value bond that matures in 5 years.
B) the current price of a $50 face value bond that matures in 10 years will be less than the current price of a $50 face value bond that matures on 5 years.
C) the current prices of all $50 face value bonds will be the same,regardless of their maturity dates because they will all be worth $50 in the future.
D) the current price of a $50 face value bond will be higher if interest rates increase.
Correct Answer:
Verified
Q7: The present value of a single future
Q9: Tim has $100 in a bank account
Q10: Suppose a corporation can change its depreciation
Q25: You plan to go to Asia to
Q26: Biff deposited $9,000 in a bank account,and
Q28: A zero coupon bond pays no annual
Q35: You just invested $50,000 into an account
Q38: Which of the following conclusions would be
Q57: The future value of an annuity will
Q107: Manny and Irene will be retiring in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents