Final answer:
The statement that bonds can be sold for more or less than their face value during their lifetime based on demand and interest rate fluctuations is true. These price adjustments reflect the bond's attractiveness to investors relative to current market interest rates.
Step-by-step explanation:
During their lifetime, bonds can indeed be sold for more or less than their face value, which is determined by the market demand for these financial instruments and fluctuations in interest rates. The statement is true. A bond is a financial instrument where an investor loans money to a borrower (typically corporate or governmental) who promises to pay back the face value on the maturity date, along with regular interest payments, known as coupon payments. If interest rates in the economy fall after a bond has been issued, a bond's interest rate may be higher than the current rate, making it more attractive to investors, so it sells for more than its face value. Conversely, if interest rates rise, existing bonds with lower interest rates become less attractive, causing them to sell for less than their face value.