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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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