Question

In: Finance

The bond price converges to the par value at maturity. Group of answer choices True False

The bond price converges to the par value at maturity.

Group of answer choices

True

False

Solutions

Expert Solution

The price of both premium Bond and discount Bond will be converging to the par value at the maturity.

The given statement is TRUE because the bond price will be converging to the power value at the maturity.

The given statement is TRUE.


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