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Which of the Following Is Not a Typical Property of a Discount

Question 12

Multiple Choice

Which of the following is not a typical property of a discount function d(t) d ( t ) ?


A) d(t) d ( t ) is non-decreasing in the maturity tt .
B) d(t) d ( t ) is non-increasing in the maturity tt .
C) d(t) d ( t ) decreases as the zero-coupon rate z(t) z ( t ) for maturity tt increases.
D) d(t) d ( t ) is independent of compounding convention.

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