Suppose That a Zero-Coupon Bond Has a Face Value of $10,000

question 15

Multiple Choice

Suppose that a zero-coupon bond has a face value of $10,000 and 5 years to maturity.If the YTM is 7.2%,at what price will this bond be traded?

• A)$7,063.60
• B)$6,965.59
• C)$9,328.58
• D)$7,129.86
• E)$10,000

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Definitions:

Tenancy At Sufferance

A tenancy that arises when a tenant wrongfully continues to occupy leased property after the lease has terminated.

Utilities

Services provided to the public, including water, electricity, natural gas, and sewage treatment.

Notorious Manner

This refers to actions or behavior that is widely known and recognized, often for negative reasons, due to the public nature of the activity.

Title

The legal right to own, use, or sell property or assets.