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The Yield on a Zero-Coupon Bond of Maturity T Is

Question 13

Multiple Choice

The yield on a zero-coupon bond of maturity T is equal to:


A) the expected return on the zero-coupon bond
B) the forward rate for time T -1
C) the forward rate for time T
D) the return on the bond each period,if the bond is held until maturity
E) the spot rate of interest

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