Consider a Zero-Coupon Bond with a $1,100 Payment in One

question 10

Multiple Choice

Consider a zero-coupon bond with a $1,100 payment in one year. Suppose the interest rate decreases from 10% to 8%. The price of this bond:

• A) increases from $1,000 to $1,018.
• B) increases from $1,000 to $1,375.
• C) decreases from $110 to $88.
• D) decreases from $1,210 to $1,188.

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Definitions:

Anterior Cruciate Ligament

A key ligament located inside the knee joint that connects the thigh bone to the shin bone, crucial for stabilizing the knee.

Lateral Collateral Ligament

A ligament located on the lateral (outer) side of the knee, providing stability to the outer knee joint.

Supraspinous Fossa

The depression above the spine of the scapula on the dorsal surface, which houses the supraspinatus muscle.

Acromion

An anatomical landmark located on the upper part of the shoulder blade, which extends laterally over the shoulder joint.