The Yields to Maturity on a Number of One-Year,zero-Coupon Securities

question 66

Multiple Choice

The yields to maturity on a number of one-year,zero-coupon securities are shown in the table above.What is the price (expressed as a percentage of the face value) of a one-year,zero-coupon corporate bond with a B rating?

• A) 94.33%
• B) 95.06%
• C) 95.88%
• D) 96.06%
• E) 100%

---

Definitions:

Frequency

The number of occurrences of a repeating event per unit of time, often used in the context of waves (such as sound or light) to indicate cycles per second (Hz).

Timbre

The quality of a musical note or sound that distinguishes different types of sound production, such as voices or musical instruments.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.

Middle Ear

The section of the ear between the eardrum and the inner ear, containing three bones that amplify sound.