XYZ Co Zero-Coupon Bonds Have a Face Value of $1,000 and and Mature

question 128

Multiple Choice

XYZ Co. zero-coupon bonds have a face value of $1,000 and mature in 18 years. They currently sell for $179.86 today. By what percentage will the market price rise if the market's required return falls
By half?

• A) 99%
• B) 131%
• C) 137%
• D) 175%
• E) 231%

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Definitions:

Blood

A body fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.

Apnea

A temporary cessation of breathing, especially during sleep, which can lead to various health problems.

Cessation

The process of ending or being brought to an end.

Breathing

The process of inhaling oxygen and exhaling carbon dioxide from the atmosphere.