Qu 2C true/ false

Question 2 True or wrong and motivate in maximum 5 lines a. The interest rate on a bond whose capital is repaid in the interim is always lower than the interest rate on a bond whose capital is fully repaid at the end. The two bonds are otherwise completely identical. b. Capital markets will eventually make banks disappear completely. c. The price of a zero coupon bond at 6 months is equal to the discount factor at 6 months. d. The cash reserve behaviour of banks is entirely determined by the E.SB. e. The bail- in rules allow some bank bonds to be treated as equivalent to shares. So you have no more protection than a shareholder should the financial company fall into bankruptey