Zero-Coupon Bonds with a Par Value of $1,000,000 Have a Maturity

question 80

Multiple Choice

Zero-coupon bonds with a par value of $1,000,000 have a maturity of 10 years and a required rate of return of 9 percent. What is the current price?

• A) $363,212
• B) $385,500
• C) $422,400
• D) $424,100
• E) none of the above

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Definitions:

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Revenue Recognition

The accounting rule that specifies the particular scenarios in which revenue is acknowledged or recorded.

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The process through which software is made available to and installed on the end user's computer or device.

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Income received by a franchisor for which the services have not yet been provided or realized.