Question
If you price a semi-annual coupon bond according to zero coupon prices and no arbitrage you should get a price that __________ the price according
If you price a semi-annual coupon bond according to zero coupon prices and no arbitrage you should get a price that __________ the price according to the yield to maturity because __________.
Group of answer choices
is higher than; the zero coupon discount rates do not include semi-annual compounding.
is lower than; the zero coupon discount rates do not include the coupon payments of the coupon bond.
is lower than; the zero coupon discount rates do not include semi-annual compounding.
is higher than; the coupon bond has a lower effective duration.
equals; of no-arbitratge.
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