If You Purchase a 5-Year,zero-Coupon Bond for $500,how Much Could

question 116

Multiple Choice

If you purchase a 5-year,zero-coupon bond for $500,how much could it be sold for 3 years later if interest rates have remained stable?

• A) $650.00
• B) $723.05
• C) $757.86
• D) $800.00

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Definitions:

Going Public

The process by which a privately held company offers shares of stock to the public for the first time, often through an Initial Public Offering (IPO).

Primary Market

The financial market where new securities are issued and sold for the first time to investors.

Equity Issues

The sale of new shares by a company to investors in order to raise capital.

Investment Industry Regulatory Organization

Investment Industry Regulatory Organization is a generic term that refers to a regulatory body responsible for supervising and regulating firms and professionals in the investment industry to protect investors and maintain market integrity.