Busıness Fınance I Deneme Sınavı Sorusu #1240089

At maturity, which of the followings is equal to the value of the bond?


Its par value.

Its current yield.

Its interest rate risk.

Its dividends.

Its capital gains yield.


Yanıt Açıklaması:

The bond’s price may change over time even if there are no changes in interest rates. At maturity, the value of the bond is equal to its par value. Assuming that there is no change in market interest rates, as we approach to maturity, the value of the bond approaches to its par value. Therefore, the correct option is A.

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