Discuss whether the following statement is true or false: An investor is considering purchasing either a zero-coupon
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Question:
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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