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

question 38

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 10% coupon rate paid annually? (Par values = $1,000.)

• A)$742.09
• B)$1,222.09
• C)$1,035.66
• D)$1,141.84