1. Why is a pure-discount government security (that is, one that does not make coupon payments, pays...

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1. Why is a pure-discount government security (that is, one that does not make coupon payments, pays interest at maturity, and hence sells at a discount from par) with no risk of default still risky to an investor whose holding period.does not coincide with the maturity date of the security?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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