An Investor Purchases a 30-Year, Zero-Coupon Bond with a Face

question 99

Multiple Choice

An investor purchases a 30-year, zero-coupon bond with a face value of $5000 and a yield to maturity of 8.4%. He sells this bond ten years later. What is the rate of return on his investment, assuming yield to maturity does not change?

• A) 6.72%
• B) 5.04%
• C) 8.40%
• D) 4.20%

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Definitions:

Ventral Stream

A pathway in the brain's visual cortex involved in object recognition and form representation, running from the primary visual cortex to the lower temporal lobe.

Dorsal Stream

The pathway in the brain that processes spatial and motion information, extending from the occipital lobe to the parietal lobe, often referred to as the "where" pathway.

Mirror Neurons

Neurons that fire both when an individual performs an action and when they observe the same action performed by another, implicated in learning, empathy, and understanding intentions of others.

Spoken Language

A method of human communication that uses the spoken word as its medium.