Calculate the Price of a Zero-Coupon Bond That Matures in 10

question 108

Multiple Choice

Calculate the price of a zero-coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semiannual compounding and $1,000 par value.)

• A) $553.68
• B) $558.66
• C) $940.00
• D) $1,000.00