A Risk-Free,zero-Coupon Bond with a Face Value of $1,000 Has

question 42

Multiple Choice

A risk-free,zero-coupon bond with a face value of $1,000 has 15 years to maturity.If the YTM is 5.8%,which of the following would be closest to the price this bond will trade at?

• A)$721
• B)$686
• C)$525
• D)$429
• E)$397

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Definitions:

Political Considerations

Involves factors or aspects related to governance, political ideologies, policies, and the distribution of power within a society.

Black Death

The Black Death was a devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-1300s, leading to massive death tolls and societal changes.

Catastrophe

A sudden and widespread disaster that causes great damage or suffering, often natural but can also be human-made.

Professionalization

The process by which an occupation transforms into a more formal profession, often acquiring specific qualifications, ethical standards, and a higher status.