Consider an investor who today has purchased a U.S. Treasury bond at a premium to its $1,000 par value. This bond, which was originally issued three years ago, will mature twelve years from now. This investor today paid $1,060 for this bond which today equals the competitive market price for this bond.

As time passes, the time remaining until maturity decreases, and the bond price

Question 2 options:

	Declines as time remaining until maturity decreases
	Increases as time remaining until maturity decreases
	Is constant, equal to its par value of $1,000
	Both a. and c. are correct
	Both b, and c. are correct