单选题 If market rates do not change, as time passes the price of a zero-coupon bond will:

A、

A. approach zero.
B、

B. approach the purchase price.
C、

C. approach par.

【正确答案】 C

【答案解析】A bond's value may differ substantially from it's maturity value prior to maturity. But as maturity draws nearer the bond's value converges to it's maturity value. This statement is true for regular bonds as well as zero-coupon bonds.