A Risk-Free, Zero-Coupon Bond with a $5000 Face Value Has

question 38

Multiple Choice

A risk-free, zero-coupon bond with a $5000 face value has ten years to maturity. The bond currently trades at $3650. What is the yield to maturity of this bond?

• A) 3.197%
• B) 3.284%
• C) 3.699%
• D) 3.465%

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Definitions:

Early-reader Stories

These are books or narratives designed specifically for children who are just beginning to learn how to read, featuring simple language and often accompanied by illustrations to aid comprehension.

Whole-language Approach

An educational method that emphasizes learning reading and writing through natural communications, integrating spelling, grammar, and phonics as part of the overall learning process.

Critical Thinking

The disciplined art of ensuring that you use the best thinking you are capable of in any set of circumstances.

Factual Accuracy

The extent to which information is true and devoid of errors, reflecting real events or statistics accurately.