Consider a Zero-Coupon Bond with a $1,100 Payment in One

question 10

Multiple Choice

Consider a zero-coupon bond with a $1,100 payment in one year. Suppose the interest rate decreases from 10% to 8%. The price of this bond:

• A) increases from $1,000 to $1,018.
• B) increases from $1,000 to $1,375.
• C) decreases from $110 to $88.
• D) decreases from $1,210 to $1,188.

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Definitions:

Male Faculty

Members of a school, college, or university's teaching staff who are male.

Female Faculty

Refers to the women members of the academic staff at educational institutions.

Wilcoxon Signed Rank Test

A nonparametric statistical hypothesis test used when comparing two related samples or repeated measurements on a single sample to assess whether their population mean ranks differ.

Tied Values

Occur when two or more entities in a dataset have the same value on a particular measure.