If You Purchase a 5-Year,zero-Coupon Bond for $691

question 72

Multiple Choice

If you purchase a 5-year,zero-coupon bond for $691.72,how much could it be sold for 3 years later if interest rates have remained stable?

• A) $848.12
• B) $923.50
• C) $862.92
• D) $911.15

---

Definitions:

Graph of Equation

A visual representation of all the points that satisfy a given equation, plotted on a coordinate grid.

Method of Substitution

A technique used to solve systems of equations by solving one equation for one variable and then substituting that expression into another equation.

System of Equations

A set of two or more equations with the same set of unknowns, which are solved together to find a common solution.

Method of Substitution

A technique used to solve systems of equations where one equation is solved for one variable, which is then substituted into other equations.