Q535
Long period of bond maturity leads to
A.
more price change
AnswerB.
stable prices
C.
standing prices
D.
mature prices
Answer: Option A
Solution
Answer: Option A
Solution:
Long period of bond maturity leads to more price change. With bonds, term to maturity is the time between when the bond is issued and when it matures, known as its maturity date, at which time the issuer must redeem the bond by paying the principal or face value.