The Following Is a List of Prices for Zero-Coupon Bonds $\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}$

question 48

Multiple Choice

The following is a list of prices for zero-coupon bonds with different maturities and par values of $1,000. $\begin{array}{cc}\text { Maturity }\\\text { (Years) } & \text { Price } \\1 & \$ 925.15 \\2 & 862.57 \\3 & 788.66 \\4 & 711.00\end{array}$ You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. The bond has a par value of $1,000. What would the price of the bond be one year from now if the implied forward rates stay the same?

• A) $995.63
• B) $1,108.88
• C) $1,000.00
• D) $1,042.78

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Definitions:

Primary Datum

The main reference point or plane used in dimensioning and tolerancing from which other measurements are based.

Secondary

Pertaining to an item or process that comes after the primary or main stage, often providing support or additional functionality.

Tertiary Datums

Reference points, lines, or surfaces on an object used in the hierarchical system of geometric dimensioning and tolerancing, serving as a secondary or third level of datum reference.

Target Points

Specific locations defined on a part or in a design intended to align, measure, or reference during manufacturing or assembly processes.