Zero-coupon bonds are more difficult and time-consuming to price because of the extensive revision of the basic bond pricing formula
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: The bond pricing formula has two components. The first part prices the face value and the second part determines the value of the coupon payments. Because there are no coupon payments, the second part of the equation always has a value of $0. This makes zero-coupon bonds comparatively easy to price.
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