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:

Null Hypothesis

A rephrased definition: A statistical hypothesis that predicts no effect or no relationship between variables, serving as the default position until evidence suggests otherwise.

Analysis Of Variance

A collection of statistical models and their associated procedures which are used to analyze the differences among group means in a sample.

Unrelated Groups

Groups in a study that are independent from each other, where the participants in one group are not matched or linked to those in other groups.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.