Question: Find all statement ( s ) that is ( are ) correct: a . Under the Expectations Hypothesis, if you buy a 1 0 -
Find all statements that isare correct:
a Under the Expectations Hypothesis, if you buy a year riskfree zerocoupon bond, and hold it
for years, you can expect to earn today's year zero rate, per annum over the four years.
b In reality, if you buy a year riskfree zerocoupon bond, and hold it for years, your return per
annum over the four years is uncertain and risky.
c If you buy a year riskfree zerocoupon bond, and hold it for years until maturity, your
return per annum is guaranteed to be today's year zero rate,
A
B b
C
D b c
E c
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