Describe the "zero coupon bond." Indicate how it is issued, valued in the market, and...

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Accounting

  1. Describe the "zero coupon bond." Indicate how it is issued, valued in the market, and which investor should consider a zero coupon bond.
  2. Explain the yield curve and how it reacts to changes in interest rates. Explain why long-term (30-year) bonds generally trade at a higher yield than short-term maturities. Apply the forces of inflation, monetary and fiscal policy, trade deficit, and foreign influences in your explanation.

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