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:

Niche Market

A focused, targetable portion (segment) of a market characterized by specific and specialized needs and preferences.

Segmented Market

A marketing strategy that involves dividing a broad target market into subsets of consumers with common needs, interests, and priorities.

Diversified Market

A market that includes a wide range of different products, services, or investment opportunities.

Multisided Market

A platform or marketplace that facilitates interactions between two or more distinct but interdependent groups of customers or participants.