Question content area top

Part $1$

U$.$S$.$ Savings Bonds are sold at a discount. The face value of the bond represents its value on its future maturity date.$$ Therefore,

Question content area bottom

Part $1$

A$.$

the current price of a$$ $$50$ face value bond that matures in $10$ years will be greater than the current price of a$$ $$50$ face value bond that matures in $5$ years.

B$.$

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 current price of a$$ $$50$ face value bond that matures in $5$ years.

D$.$

the current prices of all$$ $$50$ face value bonds will be the$$ same, regardless of their maturity dates because they will all be worth$$ $$50$ in the future.

Therefore,