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

question 14

Multiple Choice

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

• A) \(d ( t )\)
• Is non-decreasing in the maturity
• \(t\)
• )
• B) \(d ( t )\)
• Is non-increasing in the maturity
• \(t\)
• )
• C) \(d ( t )\)
• Decreases as the zero-coupon rate
• \(z ( t )\)
• For maturity
• \(t\)
• Increases.
• D) \(d ( t )\)
• Is independent of compounding convention.

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