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QUESTION 11 Match the concepts with the decriptions Only two cash flows: the bond's market price at the time of purchase A. Zero coupon bonds
QUESTION 11 Match the concepts with the decriptions Only two cash flows: the bond's market price at the time of purchase A. Zero coupon bonds and the bond's face value at maturity B. Yield curve of the T-Bill C. Coupon bonds D. Bills E. Notes F. Bonds represents the risk-free interest rate for different maturities. Hence, any risk-bearing security must yield a higher return. Pay face value at maturity and makes regular payments at determined intervals Its original maturity is 4, 13, 26, and 52 weeks Its original maturity is 2, 3, 5, and 10 years Its original maturity is 20 to 30 years
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