What Is the Issue Price of a Zero Coupon Bond

question 57

Multiple Choice

What is the issue price of a zero coupon bond with 15 years to maturity if it is sold to yield 7.55%?

• A) $250.00
• B) $362.31
• C) $335.62
• D) $1,000.00

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Definitions:

Scores

Refers to the numerical or categorical values obtained from tests, evaluations, or assessments.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the data points are.

Unbiased Estimates

Refers to statistical estimates that are expected to be equal to the true values of the parameter being estimated, showing no systematic error.

Population Estimates

Calculations that infer the number of individuals in a population at a certain time.