For Bonds a and B Below Find the Values of X

question 63

Multiple Choice

For bonds A and B below find the values of X and Y assuming each is a zero coupon bond with a $1,000 face value (semiannual compounding) . $$\begin{array} { c c c c } \text { Bond } & \begin{array} { c } \text { Maturity } \\\text { (Years) }\end{array} & \begin{array} { c } \text { Yield } \\\text { (Percent) }\end{array} & \begin{array} { c } \text { Price } \\( \$ \$ ) \end{array} \\\hline \text { A } & X & 10 & 458.10 \\\text { B } & 9 & Y & 212.00\end{array}$$

• A)8 years and 4 percent
• B)10 years and 8 percent
• C)12 years and 10 percent
• D)14 years and 12 percent
• E)8 years and 18 percent

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