Assume That the Following Data on U

question 1

Multiple Choice

Assume that the following data on U.S. Treasury securities is current:
-Refer to the information above. You purchase a $1,000, zero-coupon, Treasury bond that matures in seven years. Assume the term structure remains constant and that your sell the
Bond after having held it only 5 years. At what price should you be able to sell it?

• A)$1,237.86
• B)$914.50
• C)$807.85
• D)$958.22

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