The Following Is a List of Prices for Zero-Coupon Bonds

question 46

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par value of $1,000. What is the price of a 4-year maturity bond with a 12% coupon rate paid annually (Par value = $1,000.)

• A)$742.09
• B)$1,222.09
• C)$1,000.00
• D)$1,141.92
• E)None of the options

---

Definitions:

Rapport

A positive relationship characterized by mutual respect, trust, and understanding.

Economic Level

A measure of the economic status or wealth of an individual, group, or area, often affecting their access to resources.

Occupational Background

The history of jobs and professional experiences that an individual has had in their field of work.

Rapport

A positive relationship or connection between people, characterized by mutual understanding, trust, and agreement.