How about a practical example... Take a look below at Apple Bonds: (Finra Bond Center Link) click the Finra Bond Center link above select the Search Tab Type AAPL for Symbol/CUSIP and click "Show Results" answer the user agreement What do you notice about the time to maturity and price (select an answer below) Look for example at the following two bonds A bond that doesn't expire until 2043 A bond that expires in 2021 . Consider which bond is closer to the $100 par value . Be sure to read section 7-5! Optional: Here is another interesting article about Apple's financial capital structure and its use of bonds: "Apple sells $14 billion of bonds..." As a bond nears expiration the market price converges to the yield As a bond nears expiration the market price converges to par value As a bond nears expiration the market price diverges from par value As a bond nears expiration the market price converges to the coupon payment