Multiple Choice
Which of the below statements is FALSE?
A) To determine the value of each zero-coupon instrument, it is necessary to know the yield on a zero-coupon Treasury with that same maturity ─ this yield is called the forward rate.
B) Each zero-coupon instrument in the package has a maturity equal to its coupon payment date or, in the case of the principal, the maturity date.
C) The value of the bond should equal the value of all the component zero-coupon instruments.
D) the graphical depiction of the relationship between the spot rate and its maturity is called the spot rate curve.
Correct Answer:
Verified
Correct Answer:
Verified
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