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The table below shows the yields to maturity of a 1, 2, 3 and 4 year zero-coupon bonds. Based on this table, please mark the
The table below shows the yields to maturity of a 1, 2, 3 and 4 year zero-coupon bonds. Based on this table, please mark the only INCORRECT statement about zero-coupon bonds and the yield curve Yields and Prices (per\$100 Face Value) for Zero Coupon Bonds a. The yield curve for zero coupons is upward-sloping b. The YTMs for the zero-coupons indicates that the market is expecting that the Fed will be raising interest rates c. The price of a 4-year COUPON bond must be equal to P=$1190.36 d. TODAY, the spot rate for zero-coupon bond with a maturity of 3 years is 4.5%
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