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:

Conception

The process of a sperm fertilizing an ovum, leading to the formation of a zygote and the beginning of pregnancy.

Forebrain

Evolutionarily the most recent addition to the brain; coordinates advanced cognitive functions such as thinking, planning, and language; contains the allocortex, neocortex, and basal ganglia.

Midbrain

Central part of the brain; contains neural circuits for hearing and seeing as well as for orienting movements.

Hindbrain

Evolutionarily the oldest part of the brain; contains the pons, medulla, reticular formation, and cerebellum, the structures that coordinate and control most voluntary and involuntary movements.