Question
To determine Zero Rates we can use: A. Observations of market prices of strips . These are zero-coupon bonds that are synthetically created by traders
To determine Zero Rates we can use:
A. | Observations of market prices of strips . These are zero-coupon bonds that are synthetically created by traders when they sell coupons on bonds separately from the principal, AND The boot strap method. | |
B. | Observations of the number of issues with no coupon payments AND The expectations theory method. | |
C. | The Zero Rates are determined by the FED and disseminated to the markets at the FOMC meetings. | |
D. | Observations of the number of traders in Treasury Markets. These traders dictate are zero-coupon bond yields AND The belt tightening method. |
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