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In a world of positive interest rates, consider the following statements: i. A zero-coupon bond with a maturity of 10 years will have a higher
In a world of positive interest rates, consider the following statements: i. A zero-coupon bond with a maturity of 10 years will have a higher duration than a coupon-paying bond with a maturity of 8 years. ii. When the discount rate of a coupon-paying bond equals the yield to maturity, the present value of the coupon payments equal the price of the bond. Select one: a. Only i is correct b. Only ii is correct c. Both statements are correct d. Both statements are false
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