If You Purchase a 5-Year,zero-Coupon Bond for $691

question 72

Multiple Choice

If you purchase a 5-year,zero-coupon bond for $691.72,how much could it be sold for 3 years later if interest rates have remained stable?

• A) $848.12
• B) $923.50
• C) $862.92
• D) $911.15

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Definitions:

Chemical Plant

An industrial facility specialized in processing chemicals or chemical compounds to produce a variety of products or raw materials.

World Bank

An international credit institution that extends loans and grants to governmental authorities in needy countries for the objective of completing capital projects.

Grant

A Grant is a financial award given by an organization, usually the government, to individuals, businesses, or other entities to support a specific project or purpose without requiring repayment.

Natural Resource Problem

Issues arising from the overuse, misuse, or depletion of natural resources, often leading to environmental and ecological harm.