Use the Table for the Question(s)below

question 24

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 three-year zero-coupon bond is closest to:

• A)5.4%.
• B)5.8%.
• C)5.6%.
• D)6.0%.

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Creditor

An entity or person to whom money is owed by a debtor or borrower.

Efficient Manager

An individual who is effective at organizing resources and processes to achieve specific goals with minimum waste.

Partnership Funds

Resources or capital contributed by partners to a partnership for the purpose of its business.

Pro Rata Basis

A method of allocating amounts or resources proportionally, according to a specific rate, percentage, or share.