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Which of the following statement is incorrect? As a bond moves toward in maturity date, its value changes. More specifically, assuming that the discount rate
Which of the following statement is incorrect?
As a bond moves toward in maturity date, its value changes. More specifically, assuming that the discount rate does not change, a bond's value:
Increases over time if the bond is selling at discount
Is unchanged if the bond is selling at discount value.
Is getting close to its par or maturity value.
Decreases over time if the bond is selling at a premium.
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