Corporate bonds
A) offer a predictable return to investors in the form of interest or coupon payments.
B) maintain their value even in periods of changing interest rates.
C) appreciate in value as the maturity date nears.
D) lose value at the maturity date nears.

Question

Quizplus · Accepted Answer

Corporate bonds offer a predictable return to investors in the form of interest or coupon payments.

Answer: D 
 Corporate bonds lose value as the maturity date nears. This is because as the bond approaches maturity, the principal amount becomes due and there is less time for the issuer to make interest payments to the investor.

Corporate Bonds