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Which of the following statements is true or false? true false By convention the coupon rate is expressed as an effective annual rate. true false

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Which of the following statements is true or false? true false By convention the coupon rate is expressed as an effective annual rate. true false The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default free bond at its current price and hold it to maturity. true false The risk of default, which is known as the credit risk of the bond, means that, the bond's cash flows are not known with certainty. true false The principal or face value of a bond is the notional amount we use to compute the interest payments. true false Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. true false Sovereign debt is debt issued by national governments

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