Zero-Coupon Bonds with a Par Value of $1,000,000 Have a Maturity

question 1

Multiple Choice

Zero-coupon bonds with a par value of $1,000,000 have a maturity of 10 years and a required rate of return of 9 percent. What is the current price?

• A)$363,212
• B)$385,500
• C)$422,400
• D)$424,100
• E)$525,400

---

Definitions:

Viral

Pertaining to or caused by a virus; often used to describe infections or diseases that result from the presence of viral agents.

Inflammation

A natural process by which the body's white blood cells and substances they produce protect us from infection with foreign organisms, such as bacteria and viruses, often causing redness, heat, swelling, and pain.

Dehydration

A state that occurs when there is a significant reduction in body water, affecting normal physiological operations.

Electrolyte Imbalances

Electrolyte imbalances occur when the levels of electrolytes in your body are either too high or too low, affecting various bodily functions.