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

question 91

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
• E)$906

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Definitions:

Endothelium

The single layer of cells lining the blood and lymphatic vessels, heart, and other cavities in the body, instrumental in vascular function.

Simple Squamous

Describes a type of epithelial tissue composed of a single layer of flat cells, playing roles in diffusion and filtration.

Pelvic Area

The pelvic area is the lower part of the torso, enclosed by the pelvic bones and containing the reproductive organs, bladder, and rectum.

Subclavian

Pertaining to the area below the clavicle, often referring to the subclavian artery or vein which supply blood to and from the arm.