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Questions 1 and 2 please Which of the following is TRUE? A bond's price moves closer to face value (par vakue) as it approathes maturity.
Questions 1 and 2 please
Which of the following is TRUE? A bond's price moves closer to face value (par vakue) as it approathes maturity. A bond's price moves further to face value (par value) as it approaches maturity. A bond's price does not change as it approaches maturity. Bonds are referred to as amortized debt due to the fact that both interest and principal (the initial amount borrowed) payments are repaid to the lender over the life of the loan. QUESTION 2 The rate of retutn on a security is thei casctal gains rate trat a security gromises over its ife. interest rase that s security pays over its ide. interest rate that makes the preciens value of the securifyri expected cash flows equal to its price. the current market rate for comparable securities Step by Step Solution
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