J 6) Why is the yield to maturity of a. zerocoupon, riskfree bond that matures at the end of a given period the riskfree interest rate for that period? A) Since such a bond provides a riskfree return over that period, the Law of One Price guarantees that the riskfree interest rate equals the yield to maturity. B) Since a bond's price will converge on its face value as the bond approaches the maturity date, the Law of One Price dictates that the riskfree interest rate will reect this convergence. C) Since interest rates will rise and fall in response to the movement in bond prices. D) Since there is, by definition, no risk in investing in such bonds, the return from such bonds is the best that can be expected from any investment over the period. Answer: A