As a bond approaches maturity, the price of the bond will approach its par value until, the bond is worth its face value at maturity.

Name: As a bond approaches maturity, the price of the bond will approach its par value until, the bond is worth its face value at maturity.
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Question

Quizplus · Accepted Answer

This statement is true. When a bond approaches maturity, the price of the bond will gradually increase and approach its par value, which is the bond's face value. At maturity, the bond will be worth its full face value.

As a Bond Approaches Maturity, the Price of the Bond