Consider a Zero-Coupon Bond with a $1000 Face Value and Ten

question 53

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and ten years left until maturity. If the YTM of this bond is 10.4%, then the price of this bond is closest to:

• A) $1000
• B) $1040
• C) $372
• D) $602

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Definitions:

Thurstone

Refers to Louis Leon Thurstone, an American psychologist who contributed to psychometrics and is known for his work on factor analysis and the theory of intelligence.

Job Zone 5

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