Use the Table for the Question(s)below

question 41

Multiple Choice

Use the table for the question(s) below.
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value) :
-The yield to maturity for the two-year zero-coupon bond is closest to:

• A)6.0%.
• B)5.8%.
• C)5.6%.
• D)5.5%.

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Definitions:

Economic Function

The role or purpose that an economic activity serves in the broader economy, contributing to overall economic performance.

Profits and Losses

Financial gains achieved when revenue exceeds expenses, or deficits incurred when expenses outstrip revenue.

Real Assets

Physical or tangible assets that have intrinsic value, such as real estate, commodities, or natural resources.

Coincidence of Wants

A situation in barter economies where two parties each possess an item the other wants, allowing for a direct exchange without the need for a medium of exchange like money.