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Which of the following is correct regarding zero coupon bond? A zero coupon bond also pays coupon. Usually, Treasury note and Treasury bond are both
Which of the following is correct regarding zero coupon bond?
A zero coupon bond also pays coupon. | ||
Usually, Treasury note and Treasury bond are both zero coupon bond | ||
For a zero coupon bond and a bond that pays coupon, if both the maturity and YTM are the same for both bonds, then the zero coupon bond has smaller decrease in price when interest rate goes up. | ||
For a zero coupon bond and a bond that pays coupon, if both the maturity and YTM are the same for both bonds, then the zero coupn bond has a longer duration. |
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