As a Bond Nears Maturity

question 146

Multiple Choice

As a bond nears maturity:

• A)a bond issued at a premium carrying value decreases toward the maturity value.
• B)a bond issued at a discount carrying value increases toward the maturity value.
• C)the carrying value of the bond moves toward the maturity value.
• D)all of the above occur.

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Definitions:

Exports

The sale of goods and services produced in one country to residents of other countries.

Domestic Saving

The part of a nation's income that is not spent on consumption or government expenditure, and is instead saved or invested domestically.

Domestic Investment

Investments within a country's borders by both the public and private sectors, contributing to the nation's overall economic growth.

Open Economies

refers to countries or markets that engage in free trade with other countries, allowing goods, services, and capital to move across borders with minimal restrictions.