A Zero-Coupon Bond Has a Yield to Maturity of 5

question 22

Multiple Choice

A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000.If the bond matures in 16 years,it should sell for a price of __________ today.

• A) $458.00
• B) $641.00
• C) $789.00
• D) $1,100.00

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Definitions:

Proximate Cause

A legal concept that connects an individual's actions to the resulting harm or damage, indicating a direct link between the cause and effect.

Wrongful Act

An action that is illegal or immoral, or infringes on someone's rights.

Defamation

The act of making false statements about someone that harm their reputation.

Privilege

In tort law, the ability to act contrary to another person’s right without that person’s having legal redress for such acts. Privilege may be raised as a defense to defamation.