A Zero-Coupon Bond with a $1000 Face Value Has 7

question 48

Multiple Choice

A zero-coupon bond with a $1000 face value has 7 years left until maturity.If its current price is $786,then the yield to maturity on this bond is approximately:

• A)3.5%
• B)1.27%
• C)1.03%
• D)0.035%
• E)7%

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Definitions:

Stress

A physical and emotional reaction that people experience as they encounter challenges in life; can be due to both positive and negative experiences.

Optimist

An individual who tends to maintain a positive outlook on life and anticipates favorable outcomes, focusing on potential opportunities even in the face of difficulties.

Denial

A defense mechanism where an individual refuses to accept reality or facts, blocking external events from awareness.

Adaptive Coping Responses

Adaptive coping responses are constructive strategies individuals use to manage stress, challenges, or adversity effectively.