The Following Is a List of Prices for Zero-Coupon Bonds

question 21

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. What is the price of a 4-year maturity bond with a 12% coupon rate paid annually? (Par value = $1,000.)

• A)$742.09
• B)$1,222.09
• C)$1,000.00
• D)$1,141.92

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