Use the Following Information to Answer the Question(s)below

question 22

Multiple Choice

Use the following information to answer the question(s) below.
Suppose the current zero-coupon yield curve for risk-free bonds is as follows:
-The price per $100 face value of a four-year,zero-coupon,risk-free bond is closest to:

• A)$90.06.
• B)$89.16.
• C)$86.39.
• D)$84.66.

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Definitions:

Balance Sheet

A financial statement that provides an overview of a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, illustrating profitability.

Working Capital Ratio

The amount of current assets that would remain if all a company’s current liabilities were paid immediately; total current assets / total current liabilities.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.