The Yield to Maturity of a 5-Year,risk-Free,zero-Coupon Bond Is 4

question 52

Multiple Choice

The yield to maturity of a 5-year,risk-free,zero-coupon bond is 4.25%.Its face value is $2,500,what is the cost of purchasing 5 of these zero-coupon bonds?

• A)$12,500
• B)$2,030.30
• C)$2,035.17
• D)$10,151.49
• E)$10,175.87

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