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Bond A and Bond B are zero-coupon bonds issued by the same government. Bond A is due to mature in exactly t years from today,
Bond A and Bond B are zero-coupon bonds issued by the same government. Bond A is due to mature in exactly t years from today, and Bond B is due to maturity in exactly T years from today (t
A. Since there two bonds are issued by the same government, the yield of Bond A is the same as the yield of Bond B
B. The yield on A is smaller than the yield on B
C. The yield on B is smaller than the yield on A
D. Not enough information to judge whet
her the yield of Bond A is larger or smaller than the yield if Bond B
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