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

---

Definitions:

Mental Age

A concept used to describe the level of intellectual development as compared to an average person of the same chronological age.

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's countries including major powers divided into two alliances: the Allies and the Central Powers.

IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that intelligence is not a single ability but consists of several distinct types.