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

question 24

Multiple Choice

A zero coupon bond with a face value of $1,000 is currently selling for $687.38.The bond has a market yield of 5.48%.What is the bond's term to maturity?

• A)6.62 years
• B)6.93 years
• C)7.03 years
• D)7.42 years

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Central Route Persuasion

An approach to persuasion where the message is deeply analyzed, causing permanent shifts in viewpoints.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or emotional responses rather than the merit of the persuasive message itself.

Central Route Persuasion

A technique of convincing that requires thorough examination of a message's substance, focusing on rational arguments and proof.