Use the Figure for the Question(s)below

question 45

Multiple Choice

Use the figure for the question(s) below.
-A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $100 of face value that the bond will trade at if the YTM is 7%?

• A)$38.78
• B)$36.24
• C)$32.68
• D)$29.55

---

Definitions:

Market Price

Today's market price for trading an asset or service.

Journalize Entry

A process in accounting that involves recording transactions and financial events in a journal as part of the double-entry bookkeeping system.

Limited Liability Company

A form of business organization that unites the personal tax treatment of a partnership or sole proprietorship with the limited legal responsibility associated with corporations.

Tax Purposes

For tax purposes refers to the specific reasons or objectives related to the calculation and payment of taxes to comply with tax laws.