Question
U.S. Savings Bonds are sold at a discount. The face value of the bond represents its value on its future maturity date. Therefore: The current
U.S. Savings Bonds are sold at a discount. The face value of the bond represents its value on its future maturity date. Therefore: The current price of a $50 face value bond that matures in 10 years will be greater than a. the current price of a $50 face value bond that matures in 5 years. The current prices of all $50 face value bonds will be the same, regardless of their b. maturity dates because they will all be worth $50 in the future. The current price of a $50 face value bond will be higher if interest rates increase.c. The current price of a $50 face value bond that matures in 10 years will be less than the d. current price of a $50 face value bond that matures on 5 years.d.
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