A Zero Coupon Bond Has a Yield to Maturity of 5%;

question 38

Multiple Choice

A zero coupon bond has a yield to maturity of 5%; what is the bond's taxable capital gain in last year of the bonds existence?

• A) $ 47.61
• B) $ 1,000.00
• C) $ 0.00
• D) $ 45.26

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Definitions:

Afraid

The feeling of fear or apprehension about a potential or real danger, threat, or harm.

Secondary Group

A sociological term for a type of social group where interactions are impersonal, formal, and based on roles or activities rather than personal connections.

Passing Acquaintance

A superficial relationship with someone, characterized by minimal and casual interactions.

Social Interaction

The process by which individuals act and react in relation to others in a society, shaping social relationships and society itself.