Emmett Corporation Has Issued a $1,000 Face Value Zero-Coupon Bond

question 64

Multiple Choice

Emmett Corporation has issued a $1,000 face value zero-coupon bond. Which of the following values is closest to the correct price for the bond if the appropriate discount rate is 4% and the bond matures in 8 years?

• A) $730.69
• B) $968.00
• C) $1,000.00
• D) $1,032.00
• E) This problem cannot be worked without the annual interest payments provided

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Definitions:

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased in frequency through the addition of a stimulus following the behavior.

Big Mac

A double-layer hamburger produced by McDonald's that has become a globally recognized fast-food item.

Completion Rates

The percentage of participants who finish a given course, program, or study, often used as a metric of success or effectiveness.

Preferred Activity

An activity that an individual chooses or prefers over other options, often used in reinforcement learning and behavior modification strategies.