Consider a Zero-Coupon Bond with a Face Value of $1,000

question 97

Multiple Choice

Consider a zero-coupon bond with a face value of $1,000 and 20 years to maturity.The amount that the price of the bond will change if its yield to maturity decreases from 7% to 5% is closest to:

• A) $120
• B) -$53
• C) $53
• D) $673

Understand the concepts and purposes of employee stock options (ESOs).

Recognize how convertible bonds and warrants function and their benefits to holders.

Explain the valuation principles of American call options and factors affecting their value.

Identify the components and calculation of intrinsic value in options trading.

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Definitions:

Dislocation of Joints

An injury where two bones slip out of their normal position in a joint, causing pain and loss of movement.

Abuse

Misuse or treatment of something or someone in a harmful way.

Discoloration or Bruises

Changes in skin color, typically purplish or bluish, as a result of injury causing bleeding beneath the skin.

Back, Buttocks

Areas of the human body where the spine ends and the lower limbs begin, encompassing the region of the buttocks.