A Zero-Coupon Bond Has a Yield to Maturity of 12

question 8

Multiple Choice

A zero-coupon bond has a yield to maturity of 12% and a par value of $1,000. If the bond matures in 18 years, the bond should sell for a price of _______ today.

• A) $422.41
• B) $501.87
• C) $513.16
• D) $122.74

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Definitions:

Progress

Forward or onward movement towards a destination or a more advanced state or goal.

Feminism

A movement and ideology that advocates for equal rights and opportunities for women in all aspects of society.

Heroes

Individuals admired for their courage, outstanding achievements, or noble qualities, often serving as role models or symbols of ideal behavior.

Solomon Asch

A psychologist best known for his research on conformity, demonstrating how social pressure can influence individuals to conform to incorrect answers.