Which of the Following Statements Is True of a Bond

question 111

Multiple Choice

Which of the following statements is true of a bond?

• A)The maturity value of a bond is always more than the market value of the bond.
• B)Interest payments on a bond increase throughout the duration of the bond.
• C)The maturity date of a bond is contractually fixed.
• D)The call provision of a callable bond is normally exercised in the last year of the bond.
• E)The market value of a bond is stated in the bond indenture.

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