A Ten-Year, Zero-Coupon Bond with a Yield to Maturity of 4

question 27

Multiple Choice

A ten-year, zero-coupon bond with a yield to maturity of 4% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later. What is the rate of return of this investment, assuming the yield to maturity does not change?

• A) 3.20%
• B) 2.40%
• C) 4.00%
• D) 2.00%

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Definitions:

Conversion Control Sequences

Patterns in a format string that specify how to convert and format data types for input/output operations.

Scanf()

A function in C programming that allows the reading of formatted input from stdin (standard input stream).

Data Type

A data type is a classification of data which tells the compiler or interpreter how the programmer intends to use the data. This classification determines the types of operations that can be performed on the data.

Fflush()

A standard library function in C used to flush a stream’s output buffer, forcing written data to be delivered.