As Bonds Approach Their Maturity Dates

question 57

Multiple Choice

As bonds approach their maturity dates

• A) premiums or discounts will increase.
• B) the risk of a call will increase.
• C) the bonds prices will become more sensitive to changes in interest rates.
• D) prices will approach their par values.

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Definitions:

Market Share

The proportion of total sales or business that a company or product secures within a particular market.

Industry

A sector of the economy characterized by the production or processing of similar goods or services.

High Concentration Ratio

Indicates that a large percentage of a market is controlled by a few firms, which could suggest less competition.

Interindustry Competition

Competition between firms that are in different industries but may target similar markets or customer needs.