The Difference in the Prices of a Zero-Coupon Bond and a Coupon

question 52

Multiple Choice

The difference in the prices of a zero-coupon bond and a coupon bond with the same face value and maturity date is simply:

• A)Zero, since they are the same
• B)The present value of the final payment
• C)The present value of the coupon payments
• D)The future value of the coupon payments

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Definitions:

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A professional who conducts scientific studies to understand, explain, and predict aspects of human behavior and mental processes.

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