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If You Choose a Zero Coupon Bond with a Maturity

question 41

Multiple Choice

If you choose a zero coupon bond with a maturity that matches your investment horizon which of the following statements is/are correct?
I.You will have no interest rate risk on this bond.
II.Absent default,you can be sure you will earn the promised yield rate.
III.The duration of your bond is less than the time to your investment horizon.


Definitions:

Meetings

Gatherings or assemblies of people, held for the purpose of discussion, decision-making, or presentation on various subjects.

Calendar Items

Entries in a calendar that represent scheduled events or reminders.

Current Month

The month that is currently in progress according to the Gregorian calendar.

ICalendar File

A digital file format (.ics) used for storing calendar event details, which can be shared and imported into calendar applications.

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