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

question 33

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 yield to maturity on a 3-year zero-coupon bond

• A)6.37%
• B)9.00%
• C)7.33%
• D)10.00%
• E)None of the options

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Ratification

The adoption of a contract or act of another by a party who was not originally bound by the contract or act.

Breach

The violation or infringement of a law, agreement, or code of conduct.

Secret Commission

A payment made to an agent or a representative for facilitating a transaction or agreement, typically without the knowledge of some or all of the principal parties involved.

Commission Recovery

The process by which a salesperson, agent, or broker seeks to reclaim commission fees that were not paid as agreed upon in a transaction.