The method used to value a default-free zero coupon bonds (such as T-bills) requires that the interest is deducted from the face value of the bonds in advance. a.rediscounting b.market price c.forward price d.discount interest
The method used to value a default-free zero coupon bonds (such as T-bills) requires that the interest is deducted from the face value of the bonds in advance. a.rediscounting b.market price c.forward price d.discount interest
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 9QTD
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The method used to value a default-free zero coupon bonds (such as T-bills) requires that the interest is deducted from the face value of the bonds in advance.
a.rediscounting
b.market price
c.forward price
d.discount interest
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