If zero rates (i.e., discount rates) are the same for all maturities and remain the same over the next year, the price of a zero-coupon bond that matures ten years from today will:
A) Decrease over the next year
B) Remain the same over the next year
C) Increase over the next year
D) Cannot tell with the given information

Question

If zero rates (i.e., discount rates) are the same for all maturities and remain the same over the next year, the price of a zero-coupon bond that matures ten years from today will: 
A) Decrease over the next year
B) Remain the same over the next year
C) Increase over the next year
D) Cannot tell with the given information

Quizplus · Accepted Answer

The Answer is C

If Zero Rates (I