1. Which of the following is not a source of risk?
A. maturity risk
B. deferred consumption risk
C. liquidity risk
D. default risk
2. As the maturity date of a bond approaches: ?(Select the best choice below.)
A. The bond will always sell at a discount.
B. Its price will not change.
C. Default risk increases.
D. The price of the bond approaches its face value.
E. The bond will always sell at a premium.