U.S. Savings Bonds are sold at a discount. The face value of the bond

U.S. Savings Bonds are sold at a discount. The face value of the bond represents its value on its
future maturity date. Therefore,

A) the current price of a $50 face value bond that matures in 10 years will be greater than the
current price of a $50 face value bond that matures in 5 years.
B) the current price of a $50 face value bond that matures in 10 years will be less than the current
price of a $50 face value bond that matures in 5 years.
C) the current price of a $50 face value bond will be higher if interest rates increase.
D) the current prices of all $50 face value bonds will be the same, regardless of their maturity
dates because they will all be worth $50 in the future.

ANSWER

B