Consider a Zero-Coupon Bond with a $1000 Face Value and 10

question 6

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity.If the YTM of this bond is 10.4%,then the price of this bond is closest to:

• A)$1000.
• B)$602.
• C)$1040.
• D)$372.

---

Definitions:

Charles Darwin

A 19th-century naturalist who is best known for his contributions to the theory of evolution by natural selection.

Basic Emotions

Emotions that are unlearned and universal, that are reflected in the same facial expressions across cultures, and that emerge in children according to their biological timetable of development; fear, anger, disgust, surprise, happiness, and sadness are usually considered basic emotions.

Facial Expressions

Visible changes in the face that convey emotional states, intentions, or social communications.

Unlearned

Referring to behavior or knowledge that is innate or instinctual, not acquired or learned from experience or environment.