Explain why long-term bonds with zero coupons are riskier than short-term bonds that pay coupon interest.

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Explain why long-term bonds with zero coupons are riskier than short-term bonds that pay coupon interest.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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