Question: Suppose there is a financial security (zero-bond) that will pay back $2000 in five years from today. all else constant, for a given nominal interest

Suppose there is a financial security (zero-bond) that will pay back $2000 in five years from today. all else constant, for a given nominal interest rate, a change from quarterly compounding to monthly compounding will cause the current price of this security to....?

a. either increase of decrease depending on the number of years until the money is to be received

b. remain the same

c. increase

d. decrease

e. none of the possibilities

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