Use the Figure for the Question(s)below

question 102

Multiple Choice

Use the figure for the question(s) below.
-A risk-free,zero-coupon bond with a face value of $1,000 has 15 years to maturity.If the YTM is 5.8%,which of the following would be closest to the price this bond will trade at?

• A)$721
• B)$686
• C)$525
• D)$429

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Definitions:

Cohorts

Groups of subjects in a study who share a defining characteristic, typically born at around the same time, but can also refer to groups in experimental designs or demographic studies.

Flynn Effect

The observed rise over time in standardized intelligence test scores, attributed to various factors including improved nutrition, education, and test-taking strategies.

Standardized

Consistent and uniform procedures applied in testing or assessment to ensure fairness and comparability of data or results.

Generations

Refers to all of the people born and living at about the same time, regarded collectively, often used to categorize specific cohorts in sociology, like Baby Boomers or Millennials.