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.

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Definitions:

Helpless Orientation

An orientation in which one seems trapped by the experience of difficulty and attributes one’s difficulty to a lack of ability.

Challenging Circumstances

Situations that pose difficulties or obstacles that require effort and adaptation to overcome.

Performance Orientation

An orientation in which one focuses on winning rather than achievement outcomes, and happiness is thought to result from winning.

Achievement Outcome

Achievement outcome refers to the results or accomplishments achieved following efforts or activities, often used in educational and professional contexts.