Assume That the Following Data on U

question 41

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 five years. Assume the term structure remains constant and that you sell the bond
After holding it only three years. For what price can you sell it?

• A)$917.66
• B)$958.41
• C)$1,135.71
• D)none of the above