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

question 25

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

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Definitions:

Neglected Children

Refers to children who do not receive adequate care, supervision, affection, or medical attention from their parents or guardians.

Spatial Abilities

The ability to grasp, rationalize, and recall the spatial connections between objects or areas.

Speed-Reading

A collection of techniques used to improve one's ability to read quickly while also maintaining or improving comprehension.

Deprived Environment

A setting that lacks the basic physical, emotional, and educational resources necessary for healthy development and well-being.