Consider the security composed of one frisured Canadian coupon payment receivable in twelve months 8 a typical example of a riskless zero-coupon bond. The one-year market discount rate established by Ludoy's sales and purchases of this security can be defined in plain English as: the net monthly coupon rate y on the underlying mortgage from which the single twelve month coupon payment is sold one plust the net coupon rate (1 + y) on the underlying mortgage from which the single twelve month coupon payment is sold the number of current dollars required to purchase one dollar receivable in twelve months the value of a current dollar as measured in dolars receivable in twelve months the number of twelve month dollars which have equivalent value to one current dollar