Use the Table for the Question(s)below

question 108

Multiple Choice

Use the table for the question(s) below.
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value) :

-The yield to maturity for the five-year zero-coupon bond is closest to:

• A)5.4%
• B)5.8%
• C)5.6%
• D)6.0%
• E)5.0%

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Definitions:

Cash

A form of liquid asset that includes currency, coins, and balances in bank accounts, used by businesses to carry out transactions.

Common Stock

Equity ownership in a corporation, with holders usually having voting rights and receiving dividends variable with the company’s profitability.