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The Difference in the Prices of a Zero-Coupon Bond and a Coupon

Question 122

Multiple Choice

The difference in the prices of a zero-coupon bond and a coupon bond with the same face value and maturity date is simply:


A) zero, since they are the same.
B) the present value of the final payment.
C) the present value of the coupon payments.
D) the future value of the coupon payments.

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