A Zero-Coupon Bond Has a Yield to Maturity of 12

question 53

Multiple Choice

A zero-coupon bond has a yield to maturity of 12% and a par value of $1,000.If the bond matures in 18 years,the bond should sell for a price of _______ today.

• A) 422.41
• B) $501.87
• C) $513.16
• D) $130.04
• E) None of these is correct.

---

Definitions:

Credibility

The quality of being trusted and believed in, vital for brands and individuals to influence and persuade their audience effectively.

Efficient Means

Methods or processes that achieve desired outcomes with minimal waste of resources, such as time, energy, or materials.

Publicity

The notice or attention given to someone or something by the media, often aimed at generating public interest.

Restaurant Review

A critical assessment of a restaurant's service, food, and atmosphere, usually by a customer or professional critic.