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:

Rosa Parks

An African American civil rights activist whose refusal to give up her seat on a segregated bus in Montgomery, Alabama, in 1955 led to a citywide boycott and became a symbol of the fight against racial segregation.

Predatory Lending

Unethical practices by lenders who impose unfair and abusive loan terms on borrowers, often through high interest rates or unreasonable fees.

Loans

Money, property, or other material goods given to another party in exchange for future repayment of the loan value amount with interest or other finance charges.

Market Averages

Statistical measures that provide a snapshot of the overall movement and health of the stock market, typically represented by indices like the Dow Jones Industrial Average.