As the maturity date of bond approaches

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Reference no: EM131831105

1. Which of the following is not a source of risk?

A. maturity risk

B. deferred consumption risk

C. liquidity risk

D. default risk

2. As the maturity date of a bond approaches: ?(Select the best choice below.)

A. The bond will always sell at a discount.

B. Its price will not change.

C. Default risk increases.

D. The price of the bond approaches its face value.

E. The bond will always sell at a premium.

Reference no: EM131831105

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