Consider the Following Yields to Maturity on Various One-Year, Zero-Coupon

question 59

Multiple Choice

Consider the following yields to maturity on various one-year, zero-coupon securities: The price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating is closest to ________.

• A)113.53
• B)132.45
• C)75.69
• D)94.61

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Definitions:

Progression Principle

The principle that a need isn’t activated until the previous lower-level need is satisfied.

Hierarchy Principle

A system or organization in which people or groups are ranked one above the other according to status or authority.

Deficit Principle

The principle that a satisfied need does not motivate behaviour.

Safety Needs

Basic human necessities for security and protection from physical and emotional harm, as identified in Maslow's hierarchy of needs.