If maturity date of bond is closer than premium of bond will be

A. relatively lower

B. relatively higher

C. quantifiable

D. not be quantifiable

Answer: Option A

Solution(By Examveda Team)

If maturity date of bond is closer than premium of bond will be relatively lower. The maturity date is the date on which an investor can expect to have his or her principal repaid. It is possible to buy and sell a bond in the open market prior to its maturity date.