Discuss Whether the Following Statement Is True or False

question 28

True/False

Discuss whether the following statement is true or false:
An investor is considering purchasing either a zero-coupon bond with 5 years to maturity or a 10% coupon bond with 5 years to maturity,but if both bonds have identical yields to maturity and the investor expects to hold the bond for the full 5 years,then it does not matter which bond is purchased.

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Definitions:

B.F. Skinner

A psychologist from America recognized for his contributions to the field of behaviorism and for creating the operant conditioning theory.

John Watson

A pioneering figure in psychology known for establishing the behaviorist school of thought.

Dog Biscuit

A hard, baked, nutritionally balanced treat made specifically for dogs' consumption.

Behaviourism

A field of psychology that focuses on observable behaviors and disregards internal processes such as thoughts and emotions.