What is a zero coupon bond


Assignment:

Q1. What is the general valuation model?

Q2. Under what conditions can it be used?

Q3. How are bonds valued?

Q4. What is a zero coupon bond?

Q5. What is meant by a bond’s yield to maturity (YTM)? By its yield to call (YTC)?

Q6. Differentiate between price risk and reinvestment rate risk.

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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