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

question 55

Multiple Choice

Calculate the price of a zero-coupon bond that matures in five years if the market interest rate is 7.50 percent. (Assume semiannual compounding and $1,000 par value.)

• A) $692.04
• B) $696.57
• C) $962.50
• D) $1,000.00

---

Definitions:

Flushing

The reddening of the skin, typically over the face or neck, caused by increased blood flow to the area.

Intravenous Tubing

Flexible tubes used in medical settings to deliver fluids, medications, or nutrients directly into the veins.

Intravenous Infusion

The administration of liquid substances directly into a vein as a therapeutic treatment.

Old Gown

Typically refers to an outdated or worn-out dress; in a healthcare context, it could refer to a patient gown that is due for replacement.