If You Buy a Bond That Is Selling for Less

question 21

True/False

If you buy a bond that is selling for less than its face, or maturity, value then the price (value) of the bond will increase the maturity date nears if market interest rates do not change during the life of the bond.

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Definitions:

Programmed Decision-Making

A method of decision-making using established procedures or rules for routine or repetitive problems requiring predictable solutions.

Alternative Solutions

Different methods or approaches to solving a problem or addressing a situation, offering multiple options for consideration.

Ethical Implications

Ethical implications refer to the moral consequences or considerations of actions, decisions, or policies, focusing on what is right, wrong, or in the best interest of society and individuals.

Nonprogrammed Decision

Decisions made in response to situations that are unique, poorly defined, and largely unstructured, requiring a custom-tailored solution.