Multiple Choice
It is important to remember that the basic principle underlying bootstrapping is that the value of the Treasury coupon security should be equal to the value of the package of ________ that duplicates the ________.
A) coupon paying T-Bills; coupon bond's cash flow
B) zero-coupon Treasury securities; coupon bond's cash flow
C) coupon paying T-Bills; discount bond's cash flow
D) zero-coupon Treasury securities; discount bond's cash flow
Correct Answer:
Verified
Correct Answer:
Verified
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