A.9867

B.9877

C.9524

D.9788

A.III, I, II

B.II, I, III

C.I, III, II

D.I, II, III

A.I and II only

B.I only

C.I, II, and III only

D.All of the above

A.The investor must pay taxes on the annual accrued interest even though no interest is actually received unless the bonds are held in tax-sheltered accounts

B.Investors cannot lock in a high rate of return because of the lack of an annual coupon.

C.Large capital losses accrue when interest rates decline.

D.Zero-coupon bonds generally require the investor to switch to a coupon-bearing bond after a period of 5 years.

A.120

B.180

C.150

D.160