Consider a Zero-Coupon Bond with a $1000 Face Value and Ten

question 4

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and ten years left until maturity.If the bond is currently trading for $459,then the yield to maturity on this bond is closest to:

• A)7.5%
• B)10.4%
• C)9.7%
• D)8.1%
• E)7.2%

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Definitions:

Obturator Foramen

A large opening in the hip bone formed by the pubis and ischium, through which nerves and blood vessels pass to the lower limb.

Femur

The longest and strongest bone in the human body, connecting the hip to the knee.

Common Site

A term that refers to a place or area that is usually or frequently used for a particular purpose or activity.

Neck

The part of the body connecting the head to the torso, containing structures like the cervical vertebrae, muscles, and blood vessels.