Calculate the Price of a Zero-Coupon Bond That Matures in 20

question 127

Multiple Choice

Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 8.5 percent. (Assume annual compounding and a par value of $1,000.)

• A) $90.29
• B) $195.62
• C) $1,195.62
• D) $995.62

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Definitions:

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The observation that people are more likely to help others when they are in a good mood themselves.

Healthy Grandson

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Generous Sum

A reference to a notably large amount of money or resources given or received.

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A subjective state of well-being and contentment, perceived by an individual.