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Consider the following statements: Statement A: Supply and demand forces in the bond market will price a bond differently when using different interest-rate conventions. Statement
Consider the following statements:
- Statement A:Supply and demand forces in the bond market will price a bond differently when using different interest-rate conventions.
- Statement B:The price of a coupon-bearing bond is equal to the prices of the zero-coupon bonds that give the same cash flow profile.
Which of the statements given above is correct?
Select one:
Only statement B
Only statement A [WRONG]
Both statement A and B
Neither statement A nor B
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