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If Zero Rates (I

Question 4

Multiple Choice

If zero rates (i.e., discount rates) are the same for all maturities and remain the same over the next year, the price of a zero-coupon bond that matures ten years from today will:


A) Decrease over the next year
B) Remain the same over the next year
C) Increase over the next year
D) Cannot tell with the given information

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