The Price of a Five-Year,zero-Coupon,default-Free Security with a Face Value

question 52

Multiple Choice

The price of a five-year,zero-coupon,default-free security with a face value of $1000 is closest to:

• A)$754.
• B)$772.
• C)$776.
• D)$791.

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Definitions:

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and day-to-day administration.

Accounts Payable

Short-term liabilities a company owes to its suppliers or creditors, usually due within one year.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as equipment and investments.

Net Cash Provided

The amount of cash generated through business operations over a specific period after accounting for operational expenses and investment activities.