Consider a Zero Coupon Bond with 20 Years to Maturity

question 64

Multiple Choice

Consider a zero coupon bond with 20 years to maturity.The amount that the price of the bond will change if its yield to maturity decreases from 7% to 5% is closest to:

• A)$120
• B)-$53
• C)$53
• D)$673

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Definitions:

Sterile Areas

Specific zones within healthcare facilities maintained free from all forms of living microorganisms to prevent infections during medical procedures.

Bacterial Spore

A primitive, thick-walled reproductive body capable of developing into a new individual; resistant to killing through disinfection.

Laboratory Refrigerator

A specialized refrigerator designed to store chemicals, biological samples, and pharmaceuticals at precise temperatures to preserve their integrity.

Compromised Specimens

Biological samples that have been altered, contaminated, or degraded, potentially affecting the accuracy of test results.