问题如下:
If an investor holds a 10-year zero-coupon bond yielding 6% to maturity, what is the largest component of returns for this investment?
选项:
A. Reinvestment income.
B. Interest income.
C. Capital gains.
解释:
B is correct.
For a zero-coupon bond that has no reinvestment risk over its life, the largest increase in value would be interest income. In addition, there would be no capital gain or loss if a bond is held to maturity.
题目的市场利条件是没有用的,对吗?