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TRUE/FALSE. with a discount bond, the return on a bond is equal to the rate of capital gain.
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TRUE/FALSE. with a discount bond, the return on a bond is equal to the rate of capital gain.

User Mackendy
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Answer:

True

Step-by-step explanation:

Due to the lack of coupons in discount bonds, their returns are based only on capital gains. Because there are no coupon payments, discount bonds' current yield is always 0. They are bought for less than their face value, which is paid when they mature.

User Sapana
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