Consider a Five- Year Zero- Coupon Bond Which Has Face

question 60

Multiple Choice

Consider a five- year zero- coupon bond which has face value of $500,000 and a yield of 5% compounded semi- annually. The purchase price is:

• A) $375,604.
• B) $390,599.
• C) $398,221.
• D) $354,459.

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Definitions:

Symbol

A symbol is a graphical representation or sign that stands for an object, concept, or operation in various fields such as mathematics, physics, and engineering.

Finish All Over

Indicates that the specified finish applies uniformly to the entire surface of a part.

Abbreviation/Symbol

A character or group of characters used to represent a word, phrase, or function in engineered drawings and documents to save space and enhance clarity.

Long-break Lines

Lines used in technical drawing to indicate that a very long object is represented as shorter than its actual size for the sake of convenient illustration.