Question: 1.All else being equal , a discount bond price increases as it gets closer maturity . A. True B. False 2. When the yield to

1.All else being equal , a discount bond price increases as it gets closer maturity . A. True B. False

2. When the yield to maturity is greater than a bond's coupon rate then the bond sells at a discount. A. True B. False

3. Suppose you purchase a zero -coupon bond with face value $1,000 , maturing in 20 years , for $ 214.51 . If the yield to maturity on the bond remains unchanged , what will the price of the bond be five years from now ? A. $387.52 B. $315.20 C. $410.91

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