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

question 16

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. $$\begin{array} { c c } \text { Maturity } & \text { Price } \\\text { (Years) } & \\1 & \$ 943.40 \\2 & 881.68 \\3 & 808.88 \\4 & 742.05\end{array}$$ What is the yield to maturity on a 3-year zero-coupon bond?

• A) 6.37%
• B) 9.00%
• C) 7.33%
• D) 10.00%
• E) None of the options are correct.

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Definitions:

Dizygotic Twins

Also known as fraternal twins, born from two separate eggs fertilized by two different sperm, sharing about 50% of their DNA.

Ethnic Groups

Categories of people who identify with each other based on shared cultural, ancestral, or national characteristics.

Monozygotic Twins

Identical twins that develop from a single fertilized egg, sharing the same genetic material.

Fraternal Twins

Twins that are born from two separate eggs fertilized by two different sperm, resulting in siblings that are genetically distinct from one another.