If You Purchase a Five-Year, Zero-Coupon Bond ($1,000 Maturity Value)

question 64

Multiple Choice

If you purchase a five-year, zero-coupon bond ($1,000 maturity value) for $500, how much could it be sold for three years later if interest rates have remained stable?

• A)$650.00
• B)$723.05
• C)$757.86
• D)$800.00 Using the BAII Plus calculator:

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Definitions:

Negative-pressure Room

A special hospital room designed to prevent the spread of infections by keeping the air pressure lower than the surrounding areas to contain airborne particles.

Upper Airways

The portion of the respiratory system that includes the nose, nasal passages, pharynx, and larynx, responsible for the intake and preliminary warming and filtering of air.

Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug.

Effects of Smoking

The numerous harmful impacts on health caused by smoking tobacco, including respiratory issues, cardiovascular diseases, and increased cancer risk.