Prices of the zero-coupon bonds

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Consider the following statements:Statement A:Statement B: Select one:Only statement BOnly statement A [WRONG]

  •  Supply and demand forces in the bond market will price a bond differently when using different interest-rate conventions.
  • The price of a coupon-bearing bond is equal to the prices of the zero-coupon bonds that give the same cash flow profile.

Which of the statements given above is correct?

Both statement A and B

Neither statement A nor B

Reference no: EM132685177

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