Question: Suppose there is a financial security (zero-bond) that will pay back $2000 in give 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 give 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. Remain the same

b. Either increase or decrease depending on the number of years until the money is to be received

c. None of the possibilities

d. Increase

e. Decrease

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