What Should the Purchase Price of a 2-Year Zero-Coupon Bond

question 42

Multiple Choice

What should the purchase price of a 2-year zero-coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?

• A)$877.54
• B)$888.33
• C)$883.32
• D)$893.36

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Definitions:

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Haitian Vodou

A syncretic religion practiced chiefly in Haiti, incorporating elements of West African religions, Roman Catholicism, and indigenous Taino beliefs.

Worship

The act of showing reverence and adoration for a deity through rituals, prayers, or other religious practices.

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Individuals recognized for their holiness, virtuous conduct, and often miraculous deeds within many religious traditions, considered capable of interceding on behalf of the faithful.