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Can you please help me with this question? For an option-free, semiannual pay bond, all other factors held equal, which of the following is true?
Can you please help me with this question?
For an option-free, semiannual pay bond, all other factors held equal, which of the following is true?
a)For a bond selling at a discount to Par, as it approaches maturity the price will rise.
b)For a bond selling at a premium to Par, as it approaches maturity the price will fall.
c)The relationship between premium, discount, and par bonds is too complex to express.
d)Both A and B are true.
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