A Zero-Coupon Bond Has a Yield to Maturity of 11

question 19

Multiple Choice

A zero-coupon bond has a yield to maturity of 11% and a par value of $1,000.If the bond matures in 27 years, the bond should sell for a price of _______ today.

• A)$59.74
• B)$501.87
• C)$513.16
• D)$483.49 $1,000/(1.11)²⁷ = $59.74.

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Definitions:

Skill-based Pay Plans

Compensation systems that determine employees' pay rates based on their skills, knowledge, or proficiency rather than job titles or positions.

Pay-for-skills

A compensation strategy where employees are paid based on the variety and depth of skills they bring to their role, rather than their job title alone.

Pay-for Knowledge

A compensation strategy that rewards employees for acquiring and applying knowledge and skills pertinent to their job.

Gain-sharing

A compensation strategy that shares financial gains from improved performance or productivity with employees.