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Which of the following is TRUE about interest rates? Par yield is the coupon rate that causes bond price to equal to its market value.
Which of the following is TRUE about interest rates?
Par yield is the coupon rate that causes bond price to equal to its market value. | ||
A LIBOR rate is lower than the Treasury rate when the two have the same maturity. | ||
Since the 2008-2009 crisis, Overnight Indexed Swap (OIS) rates are now often used as a proxy for risk-free rates in derivatives valuation. | ||
Bond yield is the single discount rate that gives the value of the bond equal to its par (or principal) value. |
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