Consider a Zero-Coupon Bond with a $1000 Face Value and Ten

question 86

Multiple Choice

Consider a zero-coupon bond with a $1000 face value and ten years left until maturity.If the YTM of this bond is 10.4%,then the price of this bond is closest to:

• A)$1000
• B)$602
• C)$1040
• D)$372

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Definitions:

Biodegradable Materials

Substances that can decompose or break down naturally by microbial action, often used to reduce environmental impact.

Marketers

Professionals or organizations involved in promoting, selling, and distributing a product or service to consumers, including market research and advertising.

Profitable

Having a financial gain or beneficial outcome, especially after all expenses have been deducted.

Market Segments

Distinct groups of consumers within a market who share similar needs, desires, and characteristics, allowing for targeted marketing strategies.