If a Zero-Coupon Bond with a Face Value of $1,000

question 78

Multiple Choice

If a zero-coupon bond with a face value of $1,000 costs $800, then the rate of return if held to maturity would be

• A) -20 percent.
• B) 20 percent.
• C) -25 percent.
• D) 25 percent.

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Definitions:

Product Improvement

The process of making meaningful and incremental enhancements to a product's design, functionality, or performance to increase its value to users.

Negative Comments

Remarks that express criticism, disapproval, or a pessimistic viewpoint about something or someone.

Long-term Strategy

Planning focused on achieving goals and objectives over an extended period of time.

Stakeholders

Individuals or groups interested in or affected by the outcome of a project, decision, or policy.