Consider a Zero Coupon Bond That Has a Current Price

question 70

Multiple Choice

Consider a zero coupon bond that has a current price of $436.19 and matures in 10 years.What is its yield to maturity?

• A) 0.86%
• B) 8.65%
• C) 8.00%
• D) 58.80%
• E) 6.564%

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Definitions:

-er

A suffix in the English language used to denote someone who performs a particular action or a comparative adjective.

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A hollow part or cavity in an organ, particularly one of the two main chambers of the heart or the brain.

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Laproscopy

A minimally invasive surgical procedure that allows a surgeon to access the inside of the abdomen and pelvis without making large incisions in the skin.