ect all of those that are correct: A) prices of zero coupon bonds increase as the time to maturity decreases. B) prices of zero coupon bonds increase as the time to maturity increases. C) prices of zero coupon bonds converge to the bond's face value as maturity approaches. D) prior to maturity, the price of a zero coupon bond is less
ect all of those that are correct: A) prices of zero coupon bonds increase as the time to maturity decreases. B) prices of zero coupon bonds increase as the time to maturity increases. C) prices of zero coupon bonds converge to the bond's face value as maturity approaches. D) prior to maturity, the price of a zero coupon bond is less
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Select all of those that are correct:
A) prices of zero coupon bonds increase as the time to maturity decreases.
B) prices of zero coupon bonds increase as the time to maturity increases.
C) prices of zero coupon bonds converge to the bond's face value as maturity approaches.
D) prior to maturity, the price of a zero coupon bond is less than the bond's face value
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