Zeta Corporation Has Issued a $1,000 Face Value Zero-Coupon Bond

question 9

Multiple Choice

Zeta Corporation has issued a $1,000 face value zero-coupon bond. Which of the following values is closest to the correct price for the bond if the appropriate discount rate is 4% and the bond matures in 8 years?

• A) $968.
• B) $731.
• C) $1,000.
• D) $1,125.

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Definitions:

Managerial Role

A position that involves responsibilities such as planning, organizing, leading, and controlling within an organization to achieve its objectives.

Knowledge Management

The practice of organizing, storing, and sharing vital information and knowledge within an organization to improve efficiency, innovation, and competitiveness.

Captured

To gain control or possession of something or someone, often used in a competitive context.

Stored

Kept or accumulated for future use, often referring to information, goods, or energy.