A Zero-Coupon Bond Has a Yield to Maturity of 9

question 43

Multiple Choice

A zero-coupon bond has a yield to maturity of 9% and a par value of $1,000.If the bond matures in eight years, the bond should sell for a price of _______ today.

• A)$422.41
• B)$501.87
• C)$513.16
• D)$483.49

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Definitions:

Pyelonephritis

A type of urinary tract infection that affects one or both kidneys.

Glomerulonephritis

An inflammation of the tiny filters in the kidneys (glomeruli), which can affect kidney function.

Pyelitis

Inflammation of the renal pelvis, the funnel-shaped structure in the kidney where urine is collected before passing into the ureter.

Nocturia

The need to wake up during the night in order to urinate, disrupting sleep.