Which of the Following Statements Is True of the Price

question 24

Multiple Choice

Which of the following statements is true of the price of a bond that is less than the bond's face value?

• A) As the coupon rates remain constant, the market value of the bond remains unchanged.
• B) The price of the bond will decrease further below the bond's face value when the rates in the market are too high
• C) The price of the bond will increase as the bond gets closer to its maturity because the bond's value has to equal its face value at maturity.
• D) The market value of the bond will increase with the interest received at the maturity of the bond.
• E) The par value of the bond will increase with an increase in the bond price in the market until maturity.

---

Definitions:

Software Vendors

Companies or individuals that develop and sell software products or services to consumers or businesses.

Perfect Tender Rule

A legal principle that requires the delivery of goods to be exactly as agreed in the contract without deviation.

Substantial Performance

Substantial performance occurs when a party has completed enough of its contract obligations to warrant payment, even if minor details are unfinished.

Air Conditioner

An appliance or system designed to cool the air in an enclosed space to provide a comfortable environment.