When the coupon rate is less than the required rate of return the discount on the bond ______ as maturity approaches.

جب کوپن کی شرح واپسی کی مطلوبہ شرح سے کم ہوتی ہے تو پختگی کے قریب ہوتے ہی بانڈ ______ پر رعایت ہوتی ہے۔
Answer: Decreases
Explanation
  • When the coupon rate is lower than the required rate of return, the bond trades at a discount.
  • As the bond nears maturity, this discount gradually decreases, approaching its face value.
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