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.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

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Definitions:

Label Screw Locations

The practice of marking or identifying where screws are to be inserted or have been removed from, commonly used in assembling or disassembling devices.

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Crimper

A tool that permanently attaches an RJ-45 or RJ-11 connector to a copper core cable.

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A hand tool used to strip the insulation from electric wires to make connections or terminations.