please answer both questions min of 600 words total A+ Writers |

  • What is a Zero-Coupon Bond? Please state why you would agree or disagree with the following statement: As the duration of a zero- coupon bond is equal to its maturity, the price responsiveness of a zero- coupon bond to yield changes is the same regardless of the level of interest rates. Does a Zero Coupon bond appear to be a good investment decision, based on your opinion and research? Why?
  • We often say that bond prices and bond yields are inverted. What does that actually mean though, can you explain? Can you find a bond that has recently appreciated or depreciated in value, and offer 1 to 2 reasons why that price might have changed?