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Comparing a Discount Bond and a Coupon Bond with the Same

Question 48

Multiple Choice

Comparing a discount bond and a coupon bond with the same maturity


A) the coupon bond has the greater effective maturity.
B) the discount bond has the greater effective maturity.
C) the effective maturity cannot be calculated for a coupon bond.
D) the effective maturity cannot be calculated for a discount bond.

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