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

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Definitions:

Id

A term in psychoanalytic theory referring to the part of the unconscious personality which contains our primal, instinctive desires and drives.

Ego

A psychoanalytic term referring to the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Resistance

In psychology, the opposition to making changes or exploring unconscious feelings and thoughts during therapy.

Anal Stage

The second stage in Freud's psychosexual development theory, focusing on toilet training and control issues, leading to traits of orderliness or messiness.