The Following Is a List of Prices for Zero-Coupon Bonds $\begin{array}{cc}\text { Maturity } & \text { Price } \\\text { (Years) } & \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}$

question 53

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. $\begin{array}{cc}\text { Maturity } & \text { Price } \\\text { (Years) } & \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}$

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) $1,035.72
• D) $1,141.84

---

Definitions:

Occipital Lobes

Posterior areas of the mammalian cerebrum; interpret visual stimuli from the retina of the eye.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, speech, and higher order functions such as thinking, decision making, and planning.

Electrical Impulse

An electrical impulse is a rapid wave of electric charge that moves along the nerve fiber or muscle fibers, facilitating nerve signal transmission or muscle contraction.

Neuron Labeled

A neuron that has been marked or tagged for study, typically to trace connections or identify specific types of neurons.